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TMI Blog2020 (9) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... were submitted before the Assessing Officer. Before the Ld. CIT(A), the assessee did not appear and not filed any submissions. The argument of availability of interest free funds and giving of loans to subsidiary companies/sister concern out of such interest-free funds, has been raised for the first time before us, therefore in the interest of natural justice, we feel it appropriate to restore this issue back to the file of AO for deciding afresh in accordance with law after providing adequate opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes. - ITA No.3079/Del./2017 (Assessment Year: 2010-11) - - - Dated:- 18-8-2020 - SHRI O.P. KANT, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are that the assessee company was engaged in the business of the real estate and filed return of income for the year under consideration on 15/10/2010 declaring total income of ₹ 7,36,59,266/-. The return of income filed by the assessee was selected for scrutiny assessment and statutory notices under the Income-tax Act, 1961 (in short the Act ) were issued and complied with. During assessment proceedings, the Assessing Officer observed that in the profit and loss account the assessee has debited interest of ₹ 11,49,085/- but in the computation of the income filed, claimed interest of ₹ 2,40,49,065/- on borrowed capital under section 36(1)(iii) of the Act. The Assessing Officer denied this claim as it was not made by way o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure of ₹ 11,49,085/- in terms of section 36(1)(iii) of the Act. 2.2 The assessee filed appeal before the Ld. CIT(A), however none appeared before him in response to the notices issued/opportunities allowed. The Ld. CIT(A) upheld the disallowance observing that the assessee could not bring anything on record to show firstly, that he had interest-free funds available with him, secondly, the interest-free funds were used to give advances to its sister concern for business purposes. 2.3 Aggrieved, the assessee is before the Tribunal raising grounds as reproduced above. 3. Before us, the Learned Counsel of the assessee filed a paper-book containing pages 1 to 89 and submitted that a similar issue came up for decision befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he business expediency. This issue is squarely covered by the judgment of Hon ble Apex Court in the case of CIT v. Reliance Industries Ltd. Civil Appeal No. 10 of 2019 dated 02.01.2019, citation 410 ITR 466 (SC). 5. The Ld. Departmental Representative, on the other hand, submitted that the argument of availability of the interest-free funds with the assessee has been taken for the first time before the Tribunal and no such arguments and the documentary evidence in support thereof have been submitted by the assessee before the lower authorities and, therefore, issue might be restored back either to the Ld. CIT(A) or to the Assessing Officer for deciding afresh in accordance with law. 6. We have heard rival submission of the parties on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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