9911796707
TMI Blog2010 (9) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is directed against the order of CIT(A)- XXV, Mumbai, passed on 31/08/2009 for the assessment year 2006-07 wherein the assessee has raised the following ground of appeal:- On the facts and the circumstances of the case the learned Commissioner of income Tax (Appeal) has erred in fact and in law by not allowing proportionate interest expenses amounting to ₹ 2,55,585/- (On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and no appeal was filed against the assessment order. 3. The learned AR submitted that business of the company facilitate to the business of the assessee by that amount. He further submitted that the assessee was having sufficient fund in the form of own capital of ₹ 55,14,355/-, against which, interest free funds given was ₹ 18,93,225/-. The learned AR submitted that when advance f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P. Shah Co. in ITA No. 3694/M/06 for AY 2003-04 vide order dated 15/01/09 examined similar issue in detail and held as under:- 4.7 On the basis of above discussion a proposition / Formula can be laid down that if an assessee having sufficient interest free funds, in the form of capital reserves and other funds without interest bearing from relatives and friends not related to business, to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC).It is to note that decisions of the Hon ble Punjab and Haryana High Court in Munjal Sales Corporation V CIT (208) 298 ITR 288 and CIT V Munjal Sales Corporation(2008) 298 ITR 294 wherein the Hon ble Punjab and Haryana High Court followed CIT Abhishek Industries Ltd (2006) 286 ITR 1(P H) have been reversed by the Hon ble Supreme Court. Thus the decision of the Punjab and Haryana High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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