9911796707
TMI Blog2012 (12) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... Ludai expenses and Kapas freight and hammali - Held that:- Disallowance of these expenses were done or the reason that these were not supported by verifiable documents and were based on self made vouchers & hammali charges were disallowed on the ground that there was steep increase approximately it was 4 times in such expenses in comparison to preceding year though there was increase of quantity of purchase by about 2½ times only and even the self made vouchers were not signed by the payees. - ITA Nos.267 & 268/Ind/2012 - - - Dated:- 18-7-2012 - SHRI JOGINDER SINGH And SHRI R.C. SHARMA, JJ. Appellant by Shri S.S. Deshpande and Shri R.P. Mandovara Respondent by Shri R.A. Verma ORDER PER JOGINDER SINGH, judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the claim of the assessee of netting of interest and allowed deduction of Rs.15,27,084/- (assessment year 2007-08) and Rs.4,53,708/- (assessment year 2008-09) by excluding interest received on loans and advances which resulted into reduction of claim of deduction from Rs.38,44,762/- to Rs.15,27,084/- (assessment year 2007-08) and from Rs.20,71,565/- to Rs.4,53,708/- (assessment year 2008- 09) and the difference of the respective assessment year was added to the total income of the assessee. We find that while coming to this conclusion, the Assessing Officer followed the decision from Hon ble Apex Court in the case of Pandian Chemicals Limited; 262 ITR 278 and the Indore Bench of the Tribunal in Design Auto System Limited (ITA No. 897/Ind/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be direct and proximate nexus with the business activity. Therefore, on the issue of interest, we remand to the file of the Assessing Officer. For claiming deduction u/s 80IB of the Act, there must be direct nexus between the activity/business and is should be derived from the business activity of the assessee. However, without going into much deliberation we remand the issue of interest for which the assessee has to explain the nexus to the file of the Assessing Officer to decide on merit after providing due opportunity of being heard to the assessee. The assessee is also at liberty to furnish evidence, if any, to substantiate its claim. 5. The next ground pertains to disallowances out of oil mill hammali, pressing expenses, gi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
