9911796707
TMI Blog2015 (10) TMI 2496X X X X Extracts X X X X X X X X Extracts X X X X ..... same, we are satisfied that the delay in filing of appeal is not intentional or deliberate. The delay of 298 days in filing of the appeal is condoned and the appeal is admitted to be heard on merits. 3. The only issue raised in the appeal is against disallowance of interest Rs. 6,56,250/-, for allegedly advancing interest bearing fund towards interest free advances. The assessee filed its return of income for the assessment year 2007-08 on 22-10-2007, declaring total income of Rs. 2,12,19,428/-. The case of the assessee was selected for scrutiny and accordingly, notice u/s. 143(2) was issued to the assessee on 29-08-2008. During the course of scrutiny assessment, the Assessing Officer inter alia made disallowance of interest Rs. 6,56,250/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave sufficient funds at the time of advancing interest free loan to Shri N.V. Jadhav. The Assessing Officer has specifically recorded the findings in this regard, that at the time of advancing interest free loan in the month of August, the cash flow statement shows that the assessee was not having own funds to the extent of interest free loan advanced. The ld. DR further submitted that the assessee has not been able to show any commercial expediency for advancing interest free loan out of interest bearing funds. Hence, the disallowance of interest has been rightly made by the authorities below. To support of his submissions, the ld. DR placed reliance on the decision of Hon'ble Supreme Court of India in the case of S.A Builders Ltd. Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any interest free funds but for the advances of Rs. 1,51,00,000/- received for the transfer of rights in the land. Assessee was not having any other interest free funds in the month of August 2006 to source the interest free advances. The other funds available in the form of capital and unsecured loans were all interest bearing funds. Thus, the above mentioned contention would not come to the rescue of the assessee if we take a close look at the facts." Undisputedly, the assessee has advanced Rs. 75,00,000/- in the month of August. The advance received by the assessee on account of transfer of rights in land is more than sufficient to fund the advances made by the assessee to Shri N.V. Jadhav during that period. 8. Thus, in view of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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