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TMI Blog2020 (11) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of 'Hero Cycles (P) Ltd. [ 2015 (11) TMI 1314 - SUPREME COURT ] and in the case of 'CIT (LTU) Vs. Reliance Industries Ltd. [ 2019 (1) TMI 757 - SUPREME COURT] - Thus, as per the settled law no disallowance u/s. 36(i)(iii) of the Act is warranted on this issue. The disallowance made by the AO on this issue is ordered to be deleted. The issue is accordingly allowed in favour of the assessee. - ITA No. 1249/CHD/2019 - - - Dated:- 21-10-2020 - Sanjay Garg, Member (J) And Annapurna Gupta, Member (A) For the Appellant : Ashwani Kumar, CA For Respondents : Amaresh Singh, CIT ORDER Sanjay Garg, Member (J) 1. The present appeal has been preferred by the assessee against the order dated 26.09.2019 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 809877/- b. Bank Interest ₹ 1578525/- c. Processing Fee ₹ 95030/- Total ₹ 2483432/- The Assessing Officer observed that the assessee had made interest free advances to the following parties which were not for the business purposes of the assessee:- a. Sh. Ashutosh Projections ₹ 30,00,000 b. M/s Ganga Acrowools Ltd ₹ 1060987/- c. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for w.r.t to the said amount of ₹ 1060987/-. III. Group K. Technologies (P) Ltd:- The assessee had paid sum total of ₹ 4107823/-, during this year on behalf of the said company, out of which the balance as on 31.03.2014 remained at ₹ 1650374/-. Copy of A/c of the said concern is already enclosed hereinbefore. This concern is a sister/associate concern of the assessee. The payments of expenses were made on behalf of the said group company for business considerations under commercial expediency due to which no disallowance is called for. It was also submitted before the Ld. CIT(A) that at the most disallowance can be made in respect of the notional interest on the aforesaid interest free advances, however, no di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e High Courts as well as of the apex court of the country holding that if the assessee is possessed of sufficient own interest free funds to meet the investments/interest free advances, then, under the circumstances, presumption will be that interest free advances/investments have been made by the assessee out of own funds/interest free funds. Reliance in this respect can also be placed on the decision of the Hon'ble Supreme Court in the case of 'Hero Cycles (P) Ltd. Vs. CIT' 379 ITR 347 (SC) and also on the decision of the Hon'ble Supreme Court in the case of 'CIT (LTU) Vs. Reliance Industries Ltd.' [2019] 410 ITR 466 (SC). Thus, as per the settled law no disallowance u/s. 36(i)(iii) of the Act is warranted on this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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