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TMI Blog2015 (1) TMI 467X X X X Extracts X X X X X X X X Extracts X X X X ..... le for deduction u/s.80IE of the Act. Central Excise Duty Refund - Held that:- As regards assessee's claim of deduction with regard to excise duty refund the explanation submitted by the assessee in this regard is found to be convincing and in view of the scheme of the Union Government with regard to North Eastern State which is akin to and similar to the one in the case of Shree Balaji Alloys(2011 (1) TMI 394 - Jammu and Kashmir High Court) and therefore, in the present circumstances and facts of the case, we are bound by the decision of Shree Balaji Alloys(supra) and the said receipts are held to be capital receipts. Disallowance of interest - Held that:- As assessee explained that a sum of ₹ 24 lac was paid to Smt. Meena Kumari Pradhan for the purposes of land which was not materialized which has been returned back to the assessee company and interest was paid on capital borrowed for purchase of shares, thus since both the investments were made for the business purposes and the assessee company had earned more than investment made. Thus CIT(A) is not justified in disallowance of interest. Appeal of the assessee is allowed. - I.T.A. No. 178/Asr/2013 - - - Dated:- 2- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise department considering the same as a manufacturing activity. The authorities below did not appreciate that the several processes are involved before obtaining the final product and it is clearly a case of manufacturing. The Ld. AO has not been able to place any material on the record for rejecting the contention of the assessee and for coming to the conclusion that it is not a manufacturing activity. The AO has miserably failed to appreciate the process of manufacturing. Similarly, the CIT(Appeals) has grossly erred in confirming the order of the AO without any rhyme reason. 8. That the Ld. CIT(Appeals) has grossly erred in confirming the order of the AO wherein the AO has erred in not allowing the deduction on account of ₹ 82,48,402/- received by the appellant as Central Excise Duty Refund on the ground that the same is not derived from the Industrial undertaking. The CIT(Appeals) has miserably failed to appreciate that this amount received by the appellant on account of Excise Duty Refund is a capital receipt and is not subject to tax and it is totally exempt from the Income-Tax.. Thus the deduction on amount of ₹ 82,48,402/- u/s 80IE of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee in response to show cause dated 29.11.2011 made the various observation which for the sake of convenience are reproduced here in below: i) As per assessee's contention, it has manufactured goods worth ₹ 18.35 Crores in its Sikkim Unit. From the P L A/c of the assessee, it is seen that the assessee has not paid any electricity charges in respect of Sikkim Unit. In fact, for all its four units the assessee has shown electricity expenses of ₹ 1100/- only on turnover of ₹ 18.60 Crores, which is unimaginable. ii) On total turnover of ₹ 18.35 Crores, the assessee has shown total wages and salary expanses of ₹ 3,60,000/- only in respect of its Sikkim Unit. iii) As per Form 10CCB, in respect of its Sikkim Unit, the assessee has shown to have engaged only four workers for a turnover of ₹ 18.35 Crores. It is quite unimaginable as to how four workers could have manufactured items worth ₹ 18.35 Crores. iv) The assessee Company in its audited A/cs attachd with the return had itself shown that sales of 17.78 Crores have been made from its Ahmedabad Kota and Delhi Units which are not eligible for deduction u/s. 80IE of the A.T. Act,19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 of ₹ 1,33,10,413/- showing its activity as manufacture of gold powder from gold. During the course of assessment proceedings, the assessee vide order sheet entry dated 29.11.2011 was asked to explain and show cause as to how deduction u/s 80IE of the Income Tax Act 1961 has been claimed on conversion of gold into gold powder and why same may not be disallowed. In response, a written reply was filed in this office stating that the conversion of gold in to gold powder constitutes manufacturing activity. In this regard it is submitted that manufacturing of gold powder from gold the main raw material is gold bullion, hydrochloric acid, nitric acid and sodium met bisulphate. In the first process gold converts into gold chloride and finally convert into gold powder. By this process gold powder came into existence and process is a manufacturing process. 3.2. I have gone through the contentions raised by the assessee what amounts to manufacture has been defined in paragraph from an American judgment which has been quoted by approval by various judgments of the Hon'ble Supreme Court as also in the case of Delhi Cloth General Mills Co. Ltd. The paragraph quoted in para 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e thickness through a sieve so as to convert it into granulate lumps of sugar. But whatever the process, these articles are only forms of refined sugar with the requisite sucrose content after undergoing all the process the article continues to be sugar. In the case of the assessee also, the assessee has shown his activity of converting gold into gold chloride and finally into gold powder... Applying the rest laid down by various Hon'ble Courts as mentioned above, it is observed that converting does not result into manufacture of a commodity which is different from the original one. Reliance is also placed upon the decision of e Vasantha Co. v. State of Madras[1963] 14 STC 697 to 701 ( Mad.). In that case, the assessee was dealer in sugar and the question before the Hon'ble Court was whether sugar candy, is different from sugar and exempt from payment of sales tax. In that case, after considering various facts and circumstances of the case and the opinion of National Sugar Institute of Kanpur, it was held that sugar candy is purer form of sugar. In the case of Tungabhadra Industries Ltd. vs. CTO[1960] 11 STC 827, the Hon'ble Supreme Court has decided that pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) of the Income Tax Act, 1961 for furnishing inaccurate particulars of income are initiated. 5. As regards Ground No.8 to 10 with respect to the Excise duty refund, the assessee has received Excise dut y refund of ₹ 82,48,402/- which was claimed as deduction u/s. 80IE of the Act which is corresponding to the receipt of the said refund. A show cause notice was given that said excise dut y refund may not be withdrawn as the same is not derived from manufacturing activit y. The assessee has submitted the reply which is available at page 8 9 of the AO's order. The AO after considering the reply of the assessee mainly relied upon the decision of Ponni Sugars and Chemicals Ltd. (306 ITR, 392 (SC) and Sawhney Steel and Press Works Ltd., 228 ITR 253 (SC) apart from the decision in the case of C IT vs. Reliance Industries Ltd., Civil Appeal No. 7769 of 2011, dated 09.09.2011, the AO observed that the Income Tax Department has not accepted the decision of Hon'ble High Court of Jammu Kashmir in the case of M/s Bajaj Allo ys Ors. Vs. CIT and has filed S LP against the said decision and therefore, excise dut y refund which is received by the assessee as consequent to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuiness of such a deduction, it transpires that the assessee had advanced certain funds to sister concerns or any other person without any interest, there would be very heavy onus on the assessee to be discharged before the Assessing Officer to the effect that in spite of pending loans on which the assessee is incurring liability to pay interest, there was justification to advance loans to sister concerns for non-business purposes without any interest and, accordingly. The assessee should be allowed deduction of interest being paid on the loans raised by it to that extent. The only thing sufficient to disallow the interest paid on the borrowing to the extent the amount is lent to sister concern without carrying any interest for non- business purposes would be that the assessee has some loans or other interest-bearing debts to be repaid. In case of the assessee has some surplus amount which, according to it, could not be repaid prematurely to any financial institution, still the same is either required to be circulated and utilized for the purpose of business or to be invested in a manner in which it generates income and not that it is diverted towards sister concern free of inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown for ₹ 1100.00 B,Wages and salary for ₹ 36000.00 C,Four workers were engaged as per report 10CCB D,In the Audit balance sheet 17.78 crores have been shown made from Ahmadabad, Delhi Kota. In facts sales Tax Officer Kota has issued TIN 08062957322 copper and nickel Zinc.etc. E, At present no business activity is being carried out by the assessee. F,packing material of ₹ 23000.00 was consumed. G, Plat and machinery at Sikkim unit is ₹ 13.31Lakhs and Kota unit at ₹ 10.79 but in the same time turnover at Sikkim is ₹ 18.35 crores and at Kota is ₹ 14.40 lacs. Each and every query was explained during the course of Assessment proceedings. 1. Regarding Electricity:- In this regard it is submitted that during the course of assessment proceedings it was explained that company has paid ₹ 54112.00 on account of Electirc charges for the financial year 2008-2009 in the year 2010-11 due to the reason that company has conducted manufacturing activity only for two months and department of Energy and power Sikkim could not issue bill during the year under consideration and electric charges could not be paid without bill iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State of Haryana(1990) 76STC71(SC) page no 98. Following evidences were produced. 1. Transfer memos from Delhi to Sikkim duly seal and signed by the Sales Tax Check post Authorities Simmim have already produced before your good self. 2. Evidence regarding transportation of goods between Delhi/Ahmedabad to Simmim by the well equipped security company have also produced before your good self. 3. Copies of the requisite Mandatory declarations forms F U/S 6A(1) of the Central Sales Tax Act 1956 by the Sikkim Unit to Delhi and Ahembabad, is annexed here with and marked as Annexure B for your kind perusal. But Assessing Officer without any material on record or anything contrary against the dealer company held that Assessing Company has carried out trading activity mainly at Delhi and Ahmedabad. It is held that when making an assessment U/S 143(3) of the IT Act.1961, the A.O is not entitled to make a pure guess without any evidence on material at all.(Dhankeshwari cotton Mills Ltd Vs CIT 261ITR 775(SC). 5. It was admitted during the course of Assessment proceedings that Assessee company has discontinued his manufacturing activity at Sikim. There was no legal requirement fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India. The tax is administered by the Central Government under the Authority of Entry 84 of the union list (list 1). The Central Excise duty is levied in the term of Central Excise Act 1944 and taxable event under the Central Excise law is Manufacture and liability of central Excise duty arises as soon as the goods are manufactured. Refund of excise duty paid was in the term of notification no 56/2002. The excise duty was paid by the assessee company being a manufacturer of excise able goods. There is no law regarding payment of duty by the re-seller and get its refund. Since excise duty was paid by the dealer company it is established beyond any doubt that the dealer has manufactured the goods during the year under consideration. Copies of Excise returns and refund cheques and order was produced during the course of Assessment proceedings but same was not appreciated by the L/d Assessing Officer Kathua. Cheque for Excise dept., Monthly returns, RG 1, form 1V are annexed here with and marked as Annexure E, F, G H for your kind perusal. 11. Regarding manufacturing of gold chloride out of gold bullion is not manufacturing activity:- Section 2(29BA) of the income tax Act 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... );- Manufacture with its grammatical variation, means a change in non living physical object or things;- (a) resulting in transformation of the object of articles of thing in to a new and distinct object of article or things having a different name character and use; or (b) brining in to existence of new and distinct object or article or thing with a different composition or integral structure 12. That Regarding receipt of Excise duty of refund ₹ 8248402.00 is not revenue receipts;- Assessee company has received Excise duty refund of ₹ 8248402.00. During the course of Assessment proceedings L/d Assessing Officer was apprised with the law laid down by the Hon'ble High Court of J K in the matter of M/S Shree Balaji Alloys Ors Vs Commissioner of Income Tax Ors declared on 31.01.2011. Law laid down by the jurisdictional High Court is binding on all the courts under his jurisdiction but same has been respectfully followed by the other forums like Worthy CIT(Appeals) Jammu and ITAT Amritsar bench. But Ld. Assessing Officer has not appreciated the submission and disallowed the deduction claimed U/S 80IE of the IT Act on the central excise duty refund. Copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the leaned CIT(A) the assessee has submitted the manufacturing process in detail which is available at page 7 to10 of learned CIT(A)'s order and is reproduced for the sake of convenience as under: 1. Cutting of gold bars is small pieces. With the help of Sheet Rolling Machine and cutting machines Gold Bullion or Gold Bar have to be rolled and cut in small pieces because, it is difficult to dissolve large size of gold bars in aqua regia solution. It also helps to shorten the time of process. These small pieces have to be put in Glass Reactor along with Hydrochloric Acid, called aqua regia solution. What is Aqua regia ? Aqua Regis (lit. king's water), or nitor hydrochloric acid is a highly corrosive mixture of acids, a hydrochloric acid, usually in a volume ratio 1:3 it was named so because it can dissolve he so called royal or other metals are capable of withstanding its corrosive properties. Preparation of Aqua Regia 1. Pour 150 ml. concentrate HCL (hydrochloric acid) in a plypropylene container. 2. Carfully and slowly add 500ml. of concentrated HNOe(nitric acid) to the HCL 3. Aqua regia is prepared. To dilue it, your con add few milliliters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oluble chloride as well as a lot of unwanted material in the sludge, and this mixture (when cooled) must be filtered. The reasons for cooling is that silver chloride, though quite insoluble in water, is slightly soluble in strong acids and this solubility is lower in cold acids. The aqua-regia solution are filtered with a Buchner filtering funnel and a 4 liter vaccum filtering flask and paper discs usually used these filters. These should be large enough to line the bottom and sides of the filter funnel, inserted dry, watted thoroughly with water and firmly seated and pressed into the comers to avoid wrinkles and vacuum leaks. Two ply's of filter paper are used to help filtration and avoid breakthrough. The filtered solution is poured into a plastic container for the next step of elimination of excess nitric acid and precipitating the gold. 4. Nitric Acid Elimination The excess qua-regia that was added to ensure complete solubility of all gold is, of course, still in the solution and must be eliminated to allow the gold to be precipitated. The classic procedure for nitric acid elimination is repeated boiling to near dryness with the addition of hydrochloric acid with some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject or article or things with a different composition or integral structure. All the above submission amply support the facts that manufacturing taken place in the matter. Hence submitted for kind consideration. After considering the submission of the assessee and the manufacturing process, the learned CIT(A) rejected the claim of the assessee b y observing in vide para 4.3, 4.4 and 4.5 which is reproduced herein below for the sake of convenience. 4.3. In view of the above manufacturing process and facts of the case the following emerges: (i) The gold bar is converted into more pure form of dry gold powder for use in electronic industries. At the outset it is to mention that the appellant every where stated that it has converted gold bar to gold chloride but in fact it has only changed the shape from gold bar to gold powder. (ii) The appellant has though contested that the electricity charges were ₹ 54,112/- instead of ₹ 1100/- but could not satisfy as to why the payment of electricity charges for financial year 2008-09 were made in theyear 2010-11 and also why no bills received for the period of manufacturing timely. (iii) All purchases of gold bulli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding Sikkim for those beginning to operate between 01.04.2007 to 31.03.2017. The appellant was trying to take undue benefit of this scheme giving this a colour of manufacturing. The above observations prove that there is no manufacturing activity which has gone into process at all. 4.4. For argument sake even if it is considered that conversion of gold bars into powder has taken place, it cannot be called manufacturing activity for the following reasons. (i) This is a purification process. There may be charge in the form but there is no change in the chemical composition of gold. In the definition of manufacturing the statute also desire there should be change in the chemical composition. Manufacturing employees a change but every change is not manufacturing even though every change is the result of treatment, labour and manipulation. (ii) In the case of state of Orissa V/s Titaghur Paper Mills Company Ltd. 1985 60 STC 213(SC) it has been held that merely because certain articles are known by different names it does not mean that they are different commercial commodity. If in fact they are merely different form of same commodity. It has been held by the Bomaby High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rora, Advocate submitted a chart mainly with regard to the allegations made by the AO with reference to the CIT(A)'s findings and how the same were met out during the assessment or first appellate proceedings. For the sake of convenience the said chart is reproduced herein below:- Sl. No. Objections of the A.O. Remarks/Objection met by the Assessee- Company (1) Disallowance u/s 80IE in respect of wrong deduction claimed (i) Sikkim Unit The assessee has not paid any electricity charges in respect of Sikkim Unit. In fact for all its four units the assessee has shown electricity expenses only to the tune of ₹ 1100/- on turnover of ₹ 18.60 Crores. (Refer Para (i) Page 3 of Assessment Order] (i) It was explained that company has paid ₹ 54112/ on account of electricity charges for the financial year 2008-09 in the year 2010-11 due to the reason that company has conducted manufacturing activity only for two months and Department of Energy Power, Sikkim could not issue bill during the year under consideration and electric charges could not be paid without bill issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involved. It was held that mere consignment of goods by a manufacturer to his own branches outside the state does not amount to sales or disposal. This view finds support from the decision in the case of Goodyear India Ltd. vs. State of Haryana, reported in 76 STC 71. In this regard following evidences were produced. (i) Transfer memos from Delhi to Sikkim duly seal signed by the Sales Tax check post authorities of Sikkim. (ii) Evidence regarding transportation of goods between Delhi/Ahmedabad to Sikkim by the well equipped Security Company. (iii) Copies of the requisite mandatory declaration Form F u/s 64(1) of the Central Sales Tax Act, 1956, by the Sikkim unit to Delhi Ahmedabad. But the AO without any material on record contrary against the dealer company held that the assessee-company has carried out trading activity mainly at Delhi Ahmedabad. [Refer Para 4 Page 3 4 of the CIT(A) s order] (v)It has been gathered that there was not such industrial undertaking Sikkim as on date, as such no manufacturing activity was going on at Sikkim as on date. [Refer Para (v) Page 3 of Assessment Order] ( v)That it was admitted d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s submitted that the assessee-company has two units for different activities at Sikkim Kota. The assessee-company was engaged in the manufacturing of Gold Chlorate out of Gold at Sikkim and at Kota Coper, Nickel Zinc hence, comparison with these metals was not justifiable. [Refer Para 8 Page 4 of CIT(A) s order] (ix) Manufacturing of Gold Chlorate out of Gold Bullion is not manufacturing activity. [Refer Para 3.1 to 3.5 Page 4 to 7 of Assessment Order] Kindly refer necessary details mentioned in the order of Ld.CIT(A) in Para 4.1 to 4.4 at Page 6 to 11, which is enclosed herewith for your ready reference. (II) Disallowance u/s 80IE is respect of the Central Excise Duty Refund received by the assessee company held to be Revenue Receipt not derived from the Industrial Undertaking and cannot said to be Profits derived from Industrial Undertaking and hence liable to be added to the Income of the assessee at ₹ 82,48,402/-. [Refer Para 4.1 to 4.7 Page 7 to 12 of Assessment Order] (II) It was explained before the authorities below that the Central Excise Duty Refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not inspire confidence. As regards Excise Duty Refund, the learned DR argued that decision of Hon'ble J K High Court in the case of Balaji Alloys (supra) is not applicable since the scheme in the case of Balaji Alloys was different to scheme in the present case. 11. In the rejoinder learned counsel for the assessee Mr. P.N. Arora, Advocate argued that in the case of Shree Balaji Alloys vs. CIT 333 ITR 335 (J K) there were concessions for the State of J K to achieve the acceleration of Industrial Development in the State of J K which had been found lagging behind in such development and generation of employment in the State of J K which was not only temporary but was of permanent in nature which in the Public Interest which would have brought additional permanent source of employment to the unemployed in the State of J K. Looking to the purpose of eradication of the social problem of unemployment in the State of J K, the Hon'ble J K High Court had held that such incentive could not be construed as production or operational incentives for the benefit of assessee alone and accordingly held that excise duty refund, interest subsidy and insurance subsidy are capital rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year 2010-11 and department of energy and power could not issue the bill during the impugned year and accordingly said bill was not paid to the concerned department during the impugned year. Due to this reason no electricity charges were booked in the books of account of the impugned year. In fact the said electricity charges of ₹ 54,112 were pertaining to the impugned year ending 31st March,2009 relevant to assessment year 2009-10. Which in fact were raised during the Financial Year 2010-11. This explanation was submitted before the learned CIT(A) available at page 3 at para 1 of his order. The learned CIT(A) in fact was not satisfied in spite of the fact the reasons and explanation were placed on record along with copy of the bill of the department of energy and power, receipt of the amount paid and certificate from the Government of Sikkim, energy and power department available at PB60,61 and 62. But the learned CIT(A) has not taken cognizance of the same and merely observed at page 10 in para 4.3(ii) that he is not satisfied. This approach of the learned CIT(A) is not sustainable in law, as it suffers from the vice of non-consideration of documentary evidence brought on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Sales Tax Check post Authorities of Sikkim, ii) evidence regarding the transportation of goods between Delhi and Ahemdabad to Sikim by the well equipped security company and iii) copies of the requisite mandatory declarations forms F u/s 64(i) of the Central Sales Tax Act 1956 by the Sikkim Unit to Delhi and Ahemdabad. But the learned CIT(A) again endorsed the order of the AO without considering the explanation of the assessee just on the basis of human probability which in fact does not have any basis as evident from pages 10 11 in para 4.3 in (iii) (v) (vii) of his order. As regards the allegations that the assessee has declared consumables of ₹ 716 /- on the turnover of ₹ 18.35 Crores in respect of Sikkim Unit, it was explained and the said explanation is available in para 6 at page 4 of the CIT(A)'s order. The assessee has produced copy on account of purchases along with the evidence and basic raw material of the assessee was gold billion and consumable items such as Nitric Acid and Hydrochloric Acid were purchased and duly accounted for in the books of account and bills were produced. ₹ 716/- were for the purchase of hand gloves and laboratory items ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oled at room temperature. The aqua regia required for this contains 425 ml of concentrated hydrochloric acid(HCL)and 150ml of concentrated nitric acid where gold is completely dissolved in the aqua reiga to form a clear, golden-colored solution. After a certain duration the same is converted into Gold Chloride solution. The solution is cooled to room temperature. Thereafter, the solution is charged to second reaction vessel equipped with stirrer, a pH meter, a thermometer and cooling jacket a stirring and cooling are initiated. A concentrated sodium hydroxide solution in water is slowly added to the vessel to raise it to a particular desired pH. The addition rate of sodium hydroxide is regulated so that the temperature of the reaction mixture does not exceed a particular temperature and the resulting reaction mixture is dark orange in color and is quite clear. Thereafter, there is a Filtering Process where unwanted material is filtered. The reasons for cooling is that silver chloride, though quite insoluble in water, is slightly soluble in strong acids. Thereafter, the nitric acid is eliminated by boiling to near dryness with the addition of hydrochloric acid with some sulphuric ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion the manufacturing process which in fact is part of the learned CIT(A)'s order at page 7 to 10 as mentioned herein above, mentioning of such a cumbersome manufacturing process as purification process and mentioning that there is no change in the chemical composite of gold by the learned CIT(A) is without any basis and without considering explanation of assessee. 19. In view of our findings herein above and the explanation submitted by the assessee discussed herein above, we hold that the conversion of gold bullion or gold bar to the gold chlorate powder is a manufacturing process, in the circumstances and facts of the present case since, the final and manufactured product is new and distinct object with different name character and use which is not possible in the case of raw material. In the circumstances and facts of the case, the decisions relied upon by the AO at page 5 to 7 and learned CIT at page 11 are not at all applicable. As regards the argument made by Mr. Tarsem Lal learned DR that there is a tendency amongst people to avoid tax and gold bullion is not available in the open market but from the SBI and actually there is no purchase and no meaningful expenses ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... North Eastern State which is akin to and similar to the one in the case of Shree Balaji Alloys(supra) and therefore, in the present circumstances and facts of the case, we are bound by the decision of Shree Balaji Alloys(supra) and the said receipts are held to be capital receipts. The argument made by the learned DR mentioned herein above therefore, cannot help to the revenue. Accordingly ground No. 8,9 10 of the assessee are allowed. 21. As regards Ground No.11, the assessee has submitted the explanation that a sum of ₹ 24 lac was paid to Smt. Meena Kumari Pradhan for the purposes of land which was not materialized which has been returned back to the assessee company and was allowable u/s.36(1)(iii) of the Act and interest was paid on capital borrowed for purchase of shares was also allowable U/s 36(1)(iii) of the Act and reliance was placed on the decision of ITAT, Amritsar in the case of Smt. Harbhajan Kaur, Prop. ITA No.331/Asr/2012 order dated 06/12/2013 and in the case of Asian Industries date 2.9.2014 in ITA No. 588/Asr/2013. The assessee has submitted that both the investments were made for the business purposes and the assessee company had earned more than inve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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