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TMI Blog2014 (7) TMI 1038X X X X Extracts X X X X X X X X Extracts X X X X ..... interest free funds were sufficient to meet the investments – assessee submitted that the land was purchased out of the amount that was advance to A.D Gravures in earlier years - Assessee had charged interest from A.D. Gravures and the interest was assessed as business income - CIT(A) has deleted the addition – there is no reason to interfere with the order of CIT(A) – Decided against Revenue. - I.T. A. No. 553 /AHD/2011 & C.O. No. 79/AHD/2011 - - - Dated:- 25-7-2014 - Shri Mukul Kr. Shrawat, J.M. And Shri Anil Chaturvedi, A.M.,JJ. For the Appellant : Shri M. K. Singh, Sr. D. R. For the Respondent : Shri Bavesh Shah, A. R. ORDER Per Shri Anil Chaturvedi,A.M. 1. This appeal is filed by the Revenue against the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e with respect to deletion of R. 12,25,417 out of interest expenses. 4. During the course of assessment proceedings, A.O noticed that out of the money received by the Assessee by issue of share capital, part of the money was advanced to various parties at low rate of interest. He also noticed that Assessee had taken secured loan from banks for purchase of machinery. He also noticed that Assessee had advanced ₹ 4,15,00,000/- for purchase of land. The A.O asked the Assessee to explain the need for availing loan in view of the fact that from the money received from issue of share capital Assessee had for advanced money to various parties. A.O was of the view that Assessee was using business funds for non business purposes and had dive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant company has issued equity shares and collected ₹ 4.00 crores towards equity share capital and ₹ 6.40 crores towards share premium and the said funds were also utilized by the appellant company for giving advances. The Ld. A.R submitted that the appellant company has not borrowed any unsecured loan during the year as well as any additional secured loans during the year. The term loan taken in earlier years from the bank is exclusively for purchase of plant machinery and cash credit limit used for business purpose. The appellant company vide its submission dated 14/12/2009 submitted before the AO , that it has sufficient liquid funds for giving advances for purchase of land. It is further submitted that the share capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue is now in appeal before us. 6. Before us ld. D.R. took us through the finding of A.O and supported the order of A.O. ld. A.R. on the other hand reiterated the submissions made before CIT(A) and further submitted that Assessee had in earlier years advanced money to A.D. Gravures and during the year the amount advanced was received back and was invested for purchase of land. He further submitted that Assessee was having sufficient interest funds in the form of share capital and reserves surplus and no borrowed funds have been used for non business purposes. He thus supported the order of CIT(A). 7. We have heard the rival submissions and perused the material on record. On perusal of the Balance sheet placed at page 9 of the pape ..... X X X X Extracts X X X X X X X X Extracts X X X X
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