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TMI Blog2013 (9) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... year where such loss has been claimed and determined and he should not have reduced such loss in the year under appeal where the appellant has claimed only set off the assessed and determined loss in the previous assessment years – Decided against the Revenue. Addition on account of notional interest on advance given to J.K. Cement – Held that:- There was funds available with the assessee at Rs.34,93,866/- and out of this, the assessee has advanced the sum to M/s. J.K. Cement. The said loan was received back on 30.06.2007. Admittedly the A.O. has not brought any evidence to suggest that the appellant has advanced the amount of the borrowed funds – Decided against the Revenue. Disallowance of expenses under Section 40 (a)(ia) – Held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Appeals), Jodhpur ['CIT (A)'] was dismissed. The facts in brief are that the return of income for the assessment year 2007-08 was filed by the assessee on 31.10.2007 declaring total income of Rs.75,59,309/- and the assessment was completed under Section 143(3) of the Act on 21.12.2009 at a total income of Rs.1,60,04,266/- by making addition/disallowances of Rs.84,44,957/- on various issues. The appeal preferred by the assessee before the CIT(A) was partly allowed and the plea raised by the assessee regarding reducing the carry forward long term capital loss from Rs.50,91,592/- to Rs.11,42,535/-, addition of Rs.65,000/- made on account of notional interest on advance given to J.K. Cement and disallowing expenses of Rs.38,29,125/- unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant has claimed only set off the assessed and determined loss in the previous assessment years. Therefore, in my view, the A.O. has acted upon beyond his authority by reducing the assessed and determined loss which was allowed to be carried forward and set off. Therefore the action of the A.O. is held to be against the provisions law and the appellant is entitled to set off the long term capital gain loss as determined in the asstt. years on account of sale of land as referred in this order. Thus, this ground of appeal is decided in favour of the appellant. (B) Addition on account of notional interest on advance given to J.K. Cement:- On going through the same, it is seen that as the date of advance i.e. on 15.01.2007, there was fun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not applicable. As regards the disallowance of Rs.715346, it is seen from the details filed that T.D.S. has already made and paid as per provisions of the Act. In view of above discussions, the disallowance of Rs.3829125 made under Section 40 (a)(ia) cannot be sustained and the same is therefore deleted. The findings as recorded above by the CIT(A) were upheld by the Tribunal by its impugned order. On the three issues raised, the Tribunal came to the conclusion that there was no jurisdiction of the Assessing Officer ('AO') to examine the allowability of the loss determined in earlier years, there is no direct nexus of the borrowed fund and the interest free loan and the payments made were on account of reimbursement of the expenses, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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