2021 (10) TMI 222

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..... though the notice of hearing was sent by registered post to the assessee on more than one occasions. Hence, we proceed to dispose of the appeal ex-parte, without presence of the assessee. 3. The facts relating to the issue are stated in brief. The assessee is engaged in the business of operating of resorts. The A.O. noticed that the assessee has claimed interest expenditure of Rs. 5.75 crores as detailed below:- Particulars Amount in Rs. Bank charges 9,12,980 Interest paid to Standard Chartered Investments & Loans India Ltd. 5,47,65,611 Interest paid to Others 18,36,597 Total 5,75,15,188 The A.O. noticed that the assessee has borrowed Rs. 55 crores from Standard Chartered investment and Loans India Ltd. and paid interest the .....

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..... d Ld. D.R. and perused the record. The assessee has filed written submissions before Ld. CIT(A), which read as under: "i) The appellant had an outstanding amount of Rs. 45 Crores payable to Yes Bank, as on 01.04.2014. In the Annexure-3 submitted herewith, it may be noted that the appellant received Rs. 44.10 Crores from M/s. Coffee Day Hotels and Resorts. Private Limited to repay the Loan borrowed from Yes Bank. ii) Subsequently, the appellant entered into the Facility agreement with M/s. Standard Chartered Investments and Loans Melia Limited, marked as Annexure-4, to repay the loan obtained from M/s. Coffee Day Hotels and Resorts Private Limited. The purpose of the Loan with M/s. Standard Chartered Investments is also for the repayment .....

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..... that the amount disallowed by the A.O. included bank charges of Rs. 9.12 lakhs, which have been charged by the bank for accepting credit/debit cards. The Ld. CIT(A) also noticed that the asset side of the balance sheet contains only assets, which are applied for business purposes. He noticed that the borrowings made by the assessee from M/s. Coffee Day Hotels & Resorts Pvt. Ltd. were used to repay the term loan taken from Yes Bank Ltd. The present loan taken from Standard Chartered Investment & Loans India Ltd. has been used to repay the loan taken from Coffee Day Hotels & Resorts Pvt. Ltd. These facts show that the assessee was only reshuffling its loan portfolio by changing the lenders, i.e., it is not a case, where the assessee has dive .....

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