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TMI Blog2018 (1) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... T relied upon the interpretation given to similar provisions of various DTAAs in Cushman & Wakefield Pte. Ltd. in Re. [2008 (7) TMI 8 - AUTHORITY FOR ADVANCE RULINGS]; Dieter Eberhard Gustav v. CIT 1998 (11) TMI 663 - AUTHORITY FOR ADVANCE RULINGS etc.[1998 (11) TMI 663 - AUTHORITY FOR ADVANCE RULINGS] and held that since these were not in the nature of FTS, the deduction under Section 40(a)(ia) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ately relied under CIT v. Bharti Televentures Ltd. (2011 (1) TMI 326 - DELHI HIGH COURT ). The finding with respect to commercial expediency, in the circumstances, does not call for interference. Revenue appeal dismissed. - ITA 1084/2017, C.M. APPL.43425/2017 - - - Dated:- 29-11-2017 - Mr. Ravindra Bhat And Mr. Sanjeev Sachdeva JJ. For the Appellant: Sh. Sanjay Kumar, Jr. Standing Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. The first is with respect to the deletion of ₹ 7,27,532/- under Section 40(a)(ia) of the Income Tax Act, 1961 [hereafter the 1961 Act ] and the second, the addition of interest to the extent of ₹ 1,02,22,500/- under Section 36(1)(iii). So far as the first question, i.e. deletion of ₹ 7,27,532/- is concerned, this Court is of the opinion that since the ITAT has rendered fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 36(1)(iii) is concerned, the addition was made purely on the basis that the funds were borrowed by a Director and that interest needed to be charged. This was wholly erroneous premise because the amounts were given to the Director for purely business purpose of the entity, i.e. to acquire guest house. The proposal did not materialize and eventually the money was returned. It is not Revenue s ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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