9911796707
TMI Blog2018 (4) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... lement because 10% is on higher side. Accordingly, we direct the AO to make a reasonable disallowance of 5%. Addition u/s 69C - Held that:- We find that the Assessee has obtained this loan of ₹ 4 crores from GIC Housing Finance Ltd. and GIC Ltd., each containing ₹ 2 crores. We find that the CIT(A) has already deleted the addition but subject to verification of record by the AO. Now, before us the learned Counsel stated that the AO has not given any appeal effect to the order of the CIT(A). We direct the AO to give appeal effect to the order of CIT(A) and after verification of records compute the income accordingly. As regards to the interest towards loans, as contended by the learned Counsel for the assessee that this intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pairs and Maintenance, Sales promotion, travelling expenses, Conveyance Expenses and Other Expenses aggregating to ₹ 2,80,19,965/- on ad-hoc basis, and the reasons assigned by them were wholly wrong and not in accordance with the provisions of Income Tax Act, 1961 and rules made thereunder. 3. We have heard the rival contentions and gone through the facts and circumstances of the case. We find that the AO has noted that the assessee has claimed expenses in the profit and loss account on account of the following: - 1) Repairs and maintenance ₹ 12.85 lacs 2) Sales Promotion Exp. ₹ 1.42 lacs 3) Travelling conveyance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated that reasonable disallowance can be made. When this fact was pointed out to the learned Sr. Departmental Representative, he after going through the schedule 11 could not point out which is the item that included as other expenses by the AO amounting to ₹ 251.96 lakhs. 5. We have also gone through the schedule 11 and noted that there is no such expenses as other expensed noted by AO amounting to ₹ 251.96 lakhs. Hence, on this amount no disallowance can be attributed. As regards to these expenses i.e. repair and maintenance, sales permission, travelling conveyance and motor car expenses and postage and telephone expenses the AO has disallowed 10% of the expenses. We are of the view that a reasonable disallowance should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsecured loans and the reasons assigned by them were wholly wrong and are vehemently denied which are not in accordance with the facts of the case and against the provisions of Income Tax Act and rules made thereunder. 9. Brief facts are that the AO noted from the balance sheet of the assessee that the assessee has taken unsecured loan of ₹ 5,90,14,441/-. Before CIT(A), the assessee has contended that the said amount of ₹ 5,90,14,000/- is coming from previous years continuously under the head inter corporate deposits and loans in the balance sheet since 2002. The assessee before CIT(A) filed the details of the same which are as under:- 1) GIC Housing Finance Ltd ₹ 200.00 lacs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record as to whether this amount was debited in the present assessment year 2011-12 or has been continuously been debited in various assessment years in different installment / different amounts and if the appellant has been debiting the amount of interest provision by spreading in various assessment years, the same will required to be re-opened as per the time limit prescribed by IT Act, 1961. As of now, in the absence of an break up figures regarding R.190.14 lacs, I am constrained to confirm the additions in the form of disallowances as indicated above. 11. Further, as regards to the interest on loan amounting to ₹ 190.14 lakhs, the CIT(A) directed the AO to verify from records as to whether this amount has been debited to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st towards loans, as contended by the learned Counsel for the assessee that this interest has never been claimed and for which bifurcation was filed before us at page 12 of the assessee s paper book. The learned Counsel also pointed out from the accounts that no such claim of deduction was made and it is only capitalized in the loan account. It seems that the claim of the assessee seems to be correct but let the AO verify the same from records, whether the assessee has made any claim of deduction in respect to this interest of ₹ 190.14 lakhs. The AO will decide after verification. This issue of assessee s appeal is set aside to the file of the AO. 13. In the result, the appeal assessee is partly allowed for statistical purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
