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TMI Blog2017 (1) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee had claimed interest. Under these facts, we are unable to accept the submission of the ld. Counsel for the assessee that the issue is squarely covered by the judgment of Hon’ble Supreme Court rendered in the case of Reliance Petroproducts Ltd. (2010 (3) TMI 80 - SUPREME COURT ). The assessee has not placed any material suggesting that the issue is debatable in view of the fact that there is a direct nexus between the advance bearing funds and the loan advanced to the partner. Therefore, we do not see any infirmity in the order of ld. CIT (A), the same is hereby affirmed. - Decided against assessee. - ITA No. 260/JP/2016 - - - Dated:- 21-10-2016 - Shri Bhagchand, AM And Shri Kul Bharat, JM Assessee by : Shri P.C. Parwal (C.A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel for the assessee has reiterated the submissions as made in the written brief. The ld. Counsel submitted that the AO framed the assessment at ₹ 1,23,43,166/- against the income declared at ₹ 1,06,12,738/-. The AO made disallowance on account of Repair and maintenance expenses, disallowance on account of discount allowed and disallowance out of interest expenses. The ld. Counsel submitted that the ld. CIT (A) deleted the disallowances made on account of Repair and maintenance, discount and reduced the disallowance made on interest expenses. The ld. Counsel submitted that in penalty proceedings, the assessee had explained that the disallowance was made on technical reasons. The interest expenses claimed are genuinely incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84/- respectively. 4.1. On the contrary, the ld. D/R opposed the submissions and submitted that there is no dispute with regard to the fact that loan was advanced out of the over draft facility. The assessee was aware that the advance was given not for the business purpose. He submitted that at one hand the assessee is paying interest to the bank and on the other hand the same amount is advanced to the partner without charging interest. Therefore, the AO had rightly disallowed the interest and the ld. CIT (A) has rightly applied the judgment of Hon ble Delhi High Court, supra. 4.2. We have heard rival contentions, perused the material available on record and gone through the orders of the authorities below. The undisputed facts that e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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