9911796707
TMI Blog2019 (4) TMI 1507X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, by an decision of the coordinate bench. In this view of the matter, respectfully following the coordinate bench decision and having regard to the fact that the learned Departmental Representative has not pointed out any reasons whatsoever as to why the coordinate bench decision will not apply on this assessment year as well, we approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. No interference is called for. Addition on account of interest free loans and advances to sister concerns - assessee did not discharge the onus of showing the nexus of interest free advances and loan with interest free funds - CIT-A deleted the addition following a direct decision in assessee s own case for the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sanction days, has nothing to do with this disallowance. We find that the payment is made for a legitimate purposes and there is no bar under section 37 on its deductibility. We, therefore, approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter on this aspect as well. X X X X Extracts X X X X X X X X Extracts X X X X ..... ars 1998-99 to 2002-03. The Assessing Officer is not satisfied and is in appeal before us. 5. We have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. 6. We find that there is no dispute that the material facts and circumstances of this assessment year, vis-à-vis the assessment years 1998-99 to 2002-03, are materially similar. The relief on this issue was given by the coordinate bench, but no specific grievance raised by the Assessing Officer against the Tribunal order, on that aspect, before Hon'ble High Court. We further find that earlier decision dated 5th June 2009 passed by the coordinate bench was carried in appeal before Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the relief granted by the appellate authority in another assessment year. Be that as it may, the issue in appeal is covered, in favour of the assessee, by an decision of the coordinate bench. In this view of the matter, respectfully following the coordinate bench decision and having regard to the fact that the learned Departmental Representative has not pointed out any reasons whatsoever as to why the coordinate bench decision will not apply on this assessment year as well, we approve the conclusions arrived at by the CIT(A) and decline to interfere in the matter. No interference is called for. 7. Ground no. 1 is thus dismissed. 8. In ground no. 2, the Assessing Officer has raised the following grievance: The CIT(A) has erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer. He was of the view that the assessee could have saved its huge interest burden only if the assessee had charged interest on interest free advance to its subsidiary. The Assessing Officer further noted that the ratio of this advance to the total borrowings is 3%. The Assessing Officer thus proceeded to disallow 3% of total interest paid by the assessee, which worked out to ₹ 4,84,19,370. Aggrieved by the disallowance so made, assessee carried the matter in appeal before the CIT(A) who granted the relief by following a direct decision dated 5th June 2009 of a coordinate bench of this Tribunal, in assessee's own case for the assessment years 1998-99 to 2002-03. The Assessing Officer is not satisfied and is in appeal befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the kickbacks and not incurred for business purposes. 13. So far as this disallowance is concerned, the relevant material facts are as follows. During the course of the assessment proceedings, the Assessing Officer noticed that the assessee had paid ₹ 1,32,000 to Delhi base agent by the name of True Bell International for fees and expenses to be incurred for registration of assessee's products in Iraq. There was another payment of US $ 2,447 for After Sales Service Fees paid to Iraqi entities, which for the detailed reasons set out in the assessment order, was found to be of the nature of kickbacks but finally, in computation of income, no disallowance was made in respect of the same. The disallowance was mad only for ₹ 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
