9911796707
TMI Blog2022 (2) TMI 573X X X X Extracts X X X X X X X X Extracts X X X X ..... preciation and cash equivalent at the end of the year. According to him, this is sufficient to meet the interest free loans advanced to sister concerns and these are not out of interest bearing loan funds on which expenditure is being claimed. When these facts were confronted to ld. Senior DR, he could not controvert the factual situation. We noted that the assessee is able to explain that inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4), Chennai for the assessment year 2015-16 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter the 'Act'), vide order dated 27.12.2017. 2. The only issue in this appeal of assessee is as regards to the order of CIT(A) in confirming the action of AO disallowing interest claimed u/s. 36(1)iii) of the Act, for giving interest free funds to sister concerns. 3. Brief facts are that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n as interest free loans to various parties. Therefore, the AO recomputed the allowable interest out of the total interest expenses claimed at ₹ 38,11,423/- and thereby made disallowance of ₹ 14,04,336/-. Aggrieved, assessee preferred appeal before CIT(A). The CIT(A) also confirmed the action of the AO. Aggrieved, assessee came in appeal before the Tribunal. 4. We have heard rival c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Senior DR, he could not controvert the factual situation. We noted that the assessee is able to explain that interest free loans advanced to sister concerns are not diverted out of interest bearing loans rather accrual of interest free funds, which is enough to meet out the same. Hence, we are of the view that this disallowance deserves to be deleted. We delete the disallowance and direct the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
