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TMI Blog2021 (12) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was maintainable which was summarily rejected by the AO and so by the ld CIT(A). Therefore considering the facts of the case we are unable to agree to the conclusion drawn by the ld CIT(A) on this issue. Accordingly we set aside the order of ld CIT(A) direct the AO to delete the disallowance of Interest - The appeal of the assessee is allowed. Rectification application qua allowing the credit of TDS - Assessee has returned the income received from M/S M/S Tamilnadu Petroproducts Ltd on which TDS of ₹ 10,04,793/- was deducted and similarly income received from Karvy Stock Broking Ltd as also returned on which TDS of ₹ 55,150/- was deducted by Karvy Stock Broking Ltd. However the deductors deposited the TDS in the nest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidiary company amounting to ₹ 1,36,23,329/- whereas on the other hand it has borrowed interest bearing funds and paid interest of ₹ 11,80,119/- during the year. Accordingly the AO issued show cause notice to the assesse as to why the proportionate interest on the loan to subsidiary should not be disallowed and added to the income of the assessee. The assesse replied the show cause notice vide letter dated 3.3.2014 by submitting that there have been inter corporate transfer of funds between the assessee and its subsidiary Mape Security P Ltd. out of commercial and business expediency. The assesse also referred to the disclosure made in the annual accounts to the effect. The assesse also filed a calculation sheet of interest whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e however at the financial year end, net payable to the assesse was ₹ 1,36,23,329/-.We have also examined the overall calculation of interest and find that if the cross transactions are taken into consideration for the whole year, then instead of interest receivable, there comes out to be interest payable by the assessee. So certainly the rectification application moved by the assesse was maintainable which was summarily rejected by the AO and so by the ld CIT(A). Therefore considering the facts of the case we are unable to agree to the conclusion drawn by the ld CIT(A) on this issue. Accordingly we set aside the order of ld CIT(A) direct the AO to delete the disallowance of Interest of ₹ 11,80,119/-. The appeal of the assesse i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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