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TMI Blog2014 (8) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... enses - the AO seems unwarranted as the necessary details were much available before the CIT(A) which has not been considered by the CIT(A) and since the assessee itself has disallowed expenses a further disallowance is uncalled for – Decided in favour of Assessee. Estimation of interest towards work in progress – Held that:- Schedule ‘C’ and schedule ‘D’ of the balance sheet show the amount of secured loans and unsecured loans, secured loans contain term loan from bank, cash credit/working capital from bank and term loan for machinery - Unsecured loans refers to the optionally convertibility debentures and interest free loan under sales tax deferral scheme - on these borrowings, the assessee has paid interest amounting to ₹ 1.99 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s declared by the assessee – Decided in favour of Assessee. - I.T.A. No. 5618/Mum/2011 - - - Dated:- 20-8-2014 - Shri N. K. Billaiya, AM, And Shri Sanjay Garg, JM,JJ. For the Petitioner : Shri Vipul Joshi Shri Nishit Gandhi For the Respondent : Shri Kishore Dhule ORDER Per N. K. Billaiya, AM: This appeal by the assessee is preferred against the order of the CIT(A)-22, Mumbai, dated 06/06/2011 pertaining to A.Y. 2008-09. 2. The first grievance of the assessee relates to the disallowance of Rs..7,58,82,547/- being 15% of the expenses claimed at Rs..11,39,93,239/-. During the course of scrutiny assessment proceedings, the assessee was asked to file details in respect of the expenses debited in profit loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re found at Schedule-9 to the profit loss account. Page 95 of the paperbook shows that the details were furnished by the assessee before the AO and the CIT(A). A perusal of the computation of income shows that the assessee has Suo Moto made certain disallowance in respect of inadmissible items which include expenses inadmissible Rs..10,00,000/- commission Rs..98.41 lakhs provision for doubtful debt Rs..43.09 lakhs, Statutory liability Rs..53.17 lakhs, freight of Rs..6.90 lakhs, Site installation Rs..4.61 lakhs and Prior period expenses of Rs..2.04 lakhs. The details of expenditure debited to profit loss account also includes repairs to machineries, site expense, commission, bad debts and miscellaneous expenses and some other expenses. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res pertain to interest on debentures. It is the say of the counsel that debentures were issued much earlier and therefore there is no question in attributing interest out of this. The DR simply supported the findings of the lower authorities. 7. We have carefully perused the orders of the authorities below and the relevant documentary evidence brought before us. Schedule C and schedule D of the balance sheet show the amount of secured loans and unsecured loans, secured loans contain term loan from bank, cash credit/working capital from bank and term loan for machinery. Unsecured loans refers to the optionally convertibility debentures and interest free loan under sales tax deferral scheme. On these borrowings, the assessee has paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law after giving a reasonable opportunity of being heard to the assessee. 10. The third grievance of the assessee is allowed for statistical purpose. 11. The last grievance of the assessee relates to the treatment of interest income amounting to Rs..19,26,941/- under the head income from other sources as against under the head profit loss of business. 12. During the course of assessment proceedings, the AO found that the assessee has shown interest income of Rs..19,26,941/- under the head business income . The AO was of the opinion that since the assessee is engaged in the business of manufacturing of HDPE pipes, fittings and sprinkler system, the interest is to be taxed under the head income from other sources . The ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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