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TMI Blog2014 (1) TMI 1686X X X X Extracts X X X X X X X X Extracts X X X X ..... Power Ltd (2009 (1) TMI 4 - BOMBAY HIGH COURT) is applicable in the case of the assessee to support the proposition that the assessee has made the loans and investments out of the surplus funds. Also, it is not disputed that the borrowed funds on which the interest paid to the sister concern is utilized for the purpose of business. Therefore, there need not be any doubt about the allowability of the interest expenditure claimed by the assessee u/s 36(1) (iii) of the Act. In view of that matter, the disallowance/addition made on account of interest on this count is deleted - Decided in favour of assessee. Disallowance of being 50% of the repairs & maintenance expenditure - Held that:- The AO disallowed the impugned claim of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. - Decided in favour of assessee for statistical purpose. - ITA No. 8370/Mum/2010 - - - Dated:- 15-1-2014 - SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND DR. S.T.M. PAVALAN, JUDICIAL MEMBER For the Petitioner : Shri Jayesh Dadia For the Respondent : Shri O.P. Singh ORDER PER DR. S.T.M. PAVALAN, JM: This appeal filed by the assessee is directed against the order of the Ld.CIT(A) -17, Mumbai dated 06.08.2010 for the assessment year 2005-06. 2. Ground No. 1 is not pressed by the assessee and the same requires no adjudication. 3. In Ground No. 2, the assessee has agitated the decision of the Ld.CIT(A) in confirming the action of the AO in disallowing the interest of ₹ 1,10,000/- paid by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Utilities and Power Ltd. Vs. CIT 313 ITR 340 wherein it has been held that no disallowance out of interest expenditure is to be made if interest free funds are sufficient to meet the investment made. Therefore, the authorities below ought not to have disallowed/confirmed the disallowance of interest paid to the sister concern. On the other hand, the Ld.DR has relied on the orders of the AO and the Ld.CIT(A) in support of the Revenue s case. 3.3 We have heard both the sides and perused the material on record. It is pertinent to mention that the disallowance/addition has been made/confirmed on the ground that the assessee has borrowed funds on which interest has been paid whereas the assessee has advanced interest free loan and made in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Repairs Maintenance-Machinery 31,738 Total 26,16,551 As the nature of repair in respect of the amount ₹ 14,77,234/- were not clear and the assessee had not provided any break up of expenditure, the AO disallowed 50% of the expenditure on repairs and thereby added the same to be total income of the assessee. On appeal, the Ld.CIT(A) after noting that the expenses were related to laying of marble floor, laying tiles, new walls and partitions, electrical and furniture and fixtures etc and in the nature of capital expenditure, sustained the impugned disallowance made by the AO. Aggrieved by the impugned decision, the assessee has raised this ground i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rade of ₹ 12,75,872/- 5.1 Briefly stated, during the assessment proceedings, the AO observed that the assessee had debited ₹ 14,27,654/- and ₹ 12,75,872/- being loss on assets discarded/ sold and obsolete stores/spares written off/ consumed respectively to the manufacturing expenses. As the assessee had accepted the error on its part in respect of the claim of expenses of ₹ 14,27,654/-, the said amount was disallowed by the AO. On the claim of the assessee in respect of the amount ₹ 12,75,872/-, the AO disallowed the same by rejecting the contention of the assessee that due to change in technologies, line of manufacture became obsolete and therefore, Intersil USA/Malaysia discontinued the business given to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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