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TMI Blog2020 (10) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... the interest free advances given during the year under consideration, it was observed by the Tribunal that the said profits would only go to reduce the debit balances, overdrafts etc. In fact, it was observed by the Tribunal that a perusal of records revealed that the cumulative balance in the capital accounts of the partners on 31.03.2011 after crediting the profits of ₹ 29,73,91,730/- therein stood reflected at ₹ 14,62,65,453/- (dr.) Tribunal while upholding the disallowance u/s 36(1)(iii) of ₹ 3,53,06,301/-, had taken a conscious view in the backdrop of the facts available on record. Considering the claim raised by the assessee in its aforesaid application, we find ourselves to be in agreement with the contention ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee applicant took us through the aforesaid application, and submitted, that as the assessee applicant at the relevant point of time had sufficient interest free funds, therefore, the disallowance under Sec. 36(1)(iii) in respect of the overdrawn partners capital account and the interest free loans advanced to third parties was liable to be restricted only to the extent of ₹ 6,534/-. It was submitted by the ld. A.R that the Hon ble Supreme Court in the case of CIT Vs. M/s Reliance Industries Ltd. in Civil Appeal No. 10 of 2019, dated 02.01.2019, had observed, that in case if an assessee has sufficient interest free funds available with it to explain its investment, then, the presumption would be that such investment was made from the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee applicant was liable to be rejected. Insofar the judgment of the Hon ble Supreme Court in the case of CIT Vs. M/s Reliance Industries Ltd. in Civil Appeal No.10 of 2019, dated 02.01.2019 was concerned, it was submitted by the ld. D.R that admittedly the Hon ble Apex Court had held that in case if an assessee has sufficient interest free funds available which would justify making of an investment under consideration, the presumption thereto would be that the investment was made from such interest free funds available with the assessee. It was submitted by the ld. D.R that as the captioned assessee did not have any interest free funds available with it during the year under consideration, therefore, the aforesaid judgment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon ble Apex Court relied upon by the assessee would not assist its case. On a perusal of the order passed by the Tribunal while disposing off the assessee‟s appeal, we find, that it was therein observed that the assessee company had advanced amounts to 3 parties in the earlier financial years, viz: (i) M/s Best Value Hypermarket (₹ 10,00,00,000/-); (ii) M/s Lesconceirages Life Care Service (₹ 2,00,00,000/-); and (iii) M/s Park Developers (₹ 2,30,00,000/-). Apart from that, the cumulative credit balance in the capital accounts of the partners as on 01.04.2010 of ₹ 28.16 crore (cr.) had turned into a cumulative debit balance of ₹ 21.59 crores (dr.) after considering the debit of ₹ 49.7 crores [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, we find ourselves to be in agreement with the contention advanced by the ld. D.R, that the assessee in the guise of the present application is in fact seeking a review of the order that was passed by the Tribunal while disposing off the appeal vide its order passed in ITA No. 3060/Mum/2016, dated 28.12.2018, which we are afraid is beyond the powers vested with the Tribunal under subsection (2) of Sec.254 of the Act. Accordingly, not finding favour with the claim of the assessee that the order passed by the Tribunal suffers from a mistake which is apparent from record, we dismiss the aforesaid application. 7. The application filed by the assessee applicant is dismissed in terms of our aforesaid observations. Order pronounced unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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