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TMI Blog2019 (3) TMI 1836X X X X Extracts X X X X X X X X Extracts X X X X ..... er judicial precedents. Addition made u/s. 36(1)(iii) - interest of advance given for purchase of immovable property - HELD THAT:- The perusal of the order of the CIT(A) shows that the assessee had demonstrated before the first appellate authority that the advances given for purchases of immovable property is far in excess of the interest free funds. In view of the facts narrated by the CIT(A) towards availability of interest free funds in excess of interest bearing loans for towards advances immovable property, we do not see any reason to interfere with the order of the CIT(A) which is sync with the judicial precedence prevailing in this regard. - Appeal of the revenue is dismissed. - ITA No. 2683/Ahd/2017 (Assessment Year 2013-14) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing officer has not agreed with the explanation of the assessee and computed the disallowance as per provision of section 14A r.w.s. 8D to the amount of ₹ 25,81,192/- and added to the total income of the assessee. 3. Regarding the issue contested in the second ground of appeal, the brief fact is that during the course of assessment proceedings, the assessing officer noticed that assessee has given interest free advances to M/s. Apple Wood Estate Pvt. Ltd., Ahmedabad and M/s. Overoi Estate Pvt. Ltd. Mumbai for purchase of immovable properties. The assessing officer asked the assessee to explain why interest expenses should not be disallowed since it has not obtained possession of the properties. The assessing officer has expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt part of the decision of the Co-ordinate Bench of the ITAT is reproduced as under:- 6. Ground No. 3 concerns disallowance of ₹ 2,07,682/- under section 14A of the Act. The CIT(A) granted relief to the assessee from such disallowance on the ground that the interest free funds at the disposal of the assessee is in excess of the corresponding investments yielding tax free income. On such facts, we do not see any reason to interfere with the aforesaid findings in view of the decision of the Hon ble Gujarat High Court in CIT vs Suzlon Energy Ltd.215 taxman 272 (Guj.) and CIT vs GIDC 218 taxman 142 (Guj.) and other judicial precedents. 7. Ground No.4 concerns disallowance of interest on advance given for purchase of immovable prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... free funds were available as pointed out above and also on page-13 of the AOs order, I am of the view that the disallowance of interest at the rate of 1.227%, worked out by the A.O. is not tenable. The A.O. is therefore directed to delete the addition of ₹ 4,83,675/-. This ground of appeal is allowed. 7.1. In view of the facts narrated by the CIT(A) towards availability of interest free funds in excess of interest bearing loans for towards advances immovable property, we do not see any reason to interfere with the order of the CIT(A) which is sync with the judicial precedence prevailing in this regard. 7.2. We thus decline to interfere. In the light of the above facts, after respectfully following the decision of the Co-or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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