9911796707
TMI Blog2021 (10) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, as presumed by the A.O. If that be so, then the amount diverted to related concern should have found place in the assets side of the Balance Sheet. We notice that the Ld. CIT(A) has given a clear finding that the asset side of the balance sheet contains only business assets. - Decided against revenue. - ITA No. 1560/Bang/2019 - - - Dated:- 28-9-2021 - George George K., Member (J) And B.R. Baskaran, Member (A) For the Appellant : Priyadarshi Mishra, D.R. ORDER Per B. R. Baskaran , Accountant Member The revenue has filed this appeal challenging the order dated 9.4.2019 passed by Ld. CIT(A)-4, Bengaluru and it relates to assessment year 2015-16. The revenue is aggrieved by the decision of Ld. CIT(A) in deleting the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orts Pvt. Ltd. It was submitted that the assets side of balance sheet contains only business assets, meaning thereby the loan proceeds have been used for business purposes only. Accordingly, it was submitted that the entire interest expenditure is allowable as deduction u/s. 36(1)(iii) of the Act. The A.O. was not convinced with the explanation given by the assessee. He took the view that the assessee has diverted interest bearing loans for giving interest free advance to the related concerns and accordingly disallowed the entire interest claim of ₹ 5.75 crores. The Ld. CIT(A) deleted the disallowance and hence the assessee has filed this appeal before us. 5. The Ld. D.R. supported the order passed by the A.O. He submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tels and Resorts Private Limited. The observation of the Learned AO that the Loan taken from M/s. Standard ( bartered Investment Loans India Limited are diverted as interest free advances to related parties is contrary to the facts of the case. Instead the loan has been utilized for repayment of Loan availed from related parties. Accordingly, the interest expenditure is an allowable expenditure. 1.06) With regard to Bank Charges, it may be noted that the appellant company is operating a resort in Bandipur, Karnataka. The guests who check in to the resort usually settle their payments through cards. The Bank charges are the charges debited by the banks, which is mainly on account of swiping of credit and debit cards. This ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
