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TMI Blog2016 (12) TMI 1833X X X X Extracts X X X X X X X X Extracts X X X X ..... PER PRADIP KUMAR KEDIA, AM: This appeal by the Assessee is directed against the order of the Commissioner of Income Tax(Appeals)-XIV, Ahmedabad dated 25/04/2013 for Assessment Year (AY) 2009-10. 2. The Assessee has raised the following grounds of appeal:- (1) The learned Commissioner of Income Tax (Appeals) XIV Ahmedabad has erred both in law and on facts of the case in passing an appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en B.Shah 18,50,000 (ii) Smitaben D.Turakhia 2,16,038 (iii) Vasumatiben P. Turakhia 40,076 (iv) Arpan D.Turakhia 4,546 4. The AO found that the assessee had advanced certain funds noted above without any interest while it incurred liability to pay interest and therefore the advances made as aforesaid were for non-business purposes. He accordingly observed that interest @ 15% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wife of one of our employees Mr.Bhargav Shah serving the company for more than 16 years. The Ld.AR contended that interest-free advances to staff is normal feature of a corporate employer. Such action on the part of the assessee has improved the confidence and mutual trust between the employer and the employees. Since the interest-free advance given to these parties, has indirectly served for int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... without any traces of commercial expediency in such advance. He accordingly submitted that the reasons cited by the CIT(A) in sustaining the disallowance does not call for any interference. 8. We have carefully heard the rival submissions and perused the orders of authorities below. At the outset, we note that the interest-free own funds available at the disposal of the assessee stands at Rs. 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the huge funds available with the assessee without any interest liability, we find that the issue is squarely covered by the aforesaid decisions. Thus, the disallowance of interest towards interest-free advance is uncalled for. Accordingly, we find merit in the grievance of the assessee. Ground No.2 is accordingly allowed. 9. Other grounds of appeal raised by the assessee are either general i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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