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TMI Blog2021 (10) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... and reasoned order discussing all the facts and circumstances as well as legal propositions of law therefore, considering the totality of facts and circumstances and case laws, we find no reason to interfere in the order of the ld. CIT(A) qua this issue, hence, we uphold the same - Appeal of the Revenue is dismissed. - ITA No. 97/JP/2019 - - - Dated:- 12-10-2021 - Shri Sandeep Gosain, JM And Shri Vikram Singh Yadav, AM For the Revenue : Smt. Monisha Choudhary (JCIT-DR) For the Assessee : Shri S.L. Poddar (Adv) ORDER PER: SANDEEP GOSAIN, J.M. The present appeal has been filed by the Revenue against the order of the ld. CIT(A), Alwar dated 20/11/2018 for the A.Y. 2012-13, wherein the Revenue has raised solitary ground of appeal which reads as under: 1. Whether on the facts and circumstances of the case and in law, the ld. CIT(A) is justified in deleting the disallowance of ₹ 2,28,000/- made U/s 36(1)(iii) of the Act, without properly appreciating the facts of the case and the material brought on record. 2. The hearing of the appeal was concluded through video conference in view of the prevailing situation of Covid-19 Pande ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, therefore, after recording reasons, notice U/s 148 of the Act was issued and after providing opportunity of hearing to the assessee, order U/s 143(3) r.w.s. 147 of the Act was passed. It was further submitted by the ld. DR that the assessee had taken unsecured loans from various persons and paid interest @ 12% amounting to ₹ 10,09,536/- and on the other hand, the assessee had given interest free loans and advances of ₹ 18,99,999/-. It was further submitted that the assessee had given interest free loan and advances of ₹ 18,99,000/- then he would have saved the amount of interest paid to unsecured loans to the extent of 12% which comes to ₹ 2,28,000/-. It was submitted that as per provisions of Section 36(iii) of the Act only those interest expenses are allowable which were incurred for the purpose of business and profession. However, the assessee has failed to brought any single evidence on record to prove that interest free loans and adv advances were given for the purpose of business of the assessee. The ld. DR has submitted that the assessee has failed to bring any material on record to demonstrate that there is no nexus between the interest bearing f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 387/- as compared to return income of ₹ 16,81,520/- (iii) That the assessing officer alter issued notice under section 148 of the Act on the reason that certain loan ₹ 18,99,999/- advance to parties without charging any interest while on the other head paid interest on borrowed funds. (iv) That the assessing officer has added an amount of rupees 2,28,000/-as interest disallowed. (iv) That the appellant has submitted that an amount of ₹ 45,68,725/- has been deployed as capital which was totally interest free. (vi) That the appellant has further submitted that the appellant has closed business nexus with the done persons and interest free loan were given on account of business expediencies and in normal course of business deals. Therefore, it has been observed by the learned CIT(A) that the assesse has own funds of ₹ 45,68,725/- which were not interest bearing and otherwise all the advances given by the assesse for the purpose of business and not for any other purpose, therefore the addition was deleted by him. The details of interest free loans given by the assesse considered by the learned AO are as under: - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sold. He played a major role in the business of the assesse for securing purchase orders and sale of goods. So this advance was also for making good business relation. The ld AR has fairly submitted before us that all the loans/advances given to the above parties were for the purpose of business and not for any other purpose. The ld. AR has submitted that the advance to M/s Ridhi Sidhi Cement Pvt. Ltd was given for the purpose of business dealing as the same was a group company and assesse is also director and share holder of the said company. It was further submitted that Shree Balaji Agro Industries was supplier of goods to the assessee and the advance was made to keep the regular supply in case of payment is delayed in routine. Therefore, as per the assessee, this advance was made as deposit against supply of goods. It was further submitted that Shri Jitendra Kumar is a broker through whom goods were purchased and sold by the assessee. According to the assessee, the said Shri Jitendra Kumar played a major role in the business of the assessee for securing purchase orders and sale of goods. Therefore, this advance was also for making good business relation. 10. We have al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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