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TMI Blog2013 (10) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... co-ordinate bench of the tribunal given for the preceding year based on similar facts and circumstances - the order of the ld. CIT(A) deleting the disallowance relating to the issue is upheld Decided against Revenue. Disallowance of interest on call money Held that:- The claim of assessee is certainly allowable in favour of the assessee - the payment of interest on the amounts of the call money stands in the same footing as payment of like interest in the same amount, therefore, such interest constitutes revenue expenditure - the order of the CIT (A) is reasonable and it does not call for any interference - DR has not brought any distinguishable fact which may justify departure from the findings of the co-ordinate bench of the tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t/interest was incurred by the assessee in carrying on of its business. This order was passed by the Tribunal by following another order by the Tribunal in the case of another group concern of the assessee i.e. "Fellowship Corporation" v. JCIT [ITA No.4352/Mum/2001]. Pursuant to the direction given by the Tribunal, the Assessing Officer repeated the addition towards finance charges in the present case. The learned CIT(A), however deleted the said addition. The Revenue has come up in appeal against such deletion. 3. The ld. AR has brought to our notice that the issue under consideration is squarely covered with the findings of the co-ordinate bench of the tribunal given in the own case of the assessee for A.Y.1996-97 passed in ITA No.5028/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the above referred documents by the assessee. It is surprising that the Assessing Officer did not make a whisper in the assessment order of such details having been filed by the assessee. What to talk of adversely commenting, the A.O. even did not bother to incorporate or discuss such facts in the assessment order. This fact has been elaborately considered by the learned CIT(A), the discussion on which has been made in paras 1.10 to 1.14 of the impugned order. On the appreciation of the entire material / evidence placed by the assessee before the A.O. in the fresh round of proceedings, the learned CIT(A) has recorded a categorical finding that these expenses were incurred during the course of business. Apart from relying on the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid on unpaid call money, which is incidental to the business activity of the assessee. Therefore, the claim is allowable u/s 37(1) read with 36(1)(iii) of the Act. These expenses are incidental to the shares, which were undisputedly held by the assessee as stock- in-trade. He also submitted that interest payments on unpaid call money is allowable in view of the judgment of the Hon'ble jurisdictional High Court in the case of "Smt. Nirmala M. Doshi" vs. CIT (82 ITR 648) (Bom) ,the relevant portions are extracted by the ld. CIT (A) in para 5 of the impugned order. On considering the above submissions as well as the legal propositions, the ld. CIT (A) came to the conclusion that the AO did not apply his mind to the documents /evidences furni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which may justify departure from the findings of the co-ordinate bench of the tribunal given on similar facts and circumstances in the case of group concern of the assessee. So respectfully following the findings of the co ordinate bench of the Tribunal the issue is decided against the Revenue and the order of the ld. CIT(A) deleting the disallowance relating to this issue is also upheld. ITA No.5337/M/2011: Both the sides are in agreement that the facts and circumstances of this appeal are mutatis mutandis similar to those of Delta International, discussed above. Following the view taken here in above, we uphold the impugned order and confirm the deletion of additions in the above case in both the issues. I.T.A. No.5339/M/2011 5338 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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