9911796707
TMI Blog2019 (2) TMI 2004X X X X Extracts X X X X X X X X Extracts X X X X ..... he lower authorities. During the course of appellate proceedings before us these contentions of the ld. counsel was not controverted by the Revenue Therefore, we are of the view that it would be appropriate to restore this issue to the file of the assessing officer to decide de-novo on the points (i) and (ii) as above after affording adequate opportunity to the assessee. Accordingly this ground of the appeal is restored to the file of the assessing officer for deciding afresh as directed above. Therefore this ground of appeal of the assessee is allowed for statistical purpose. Addition made on account of exchange rate of difference - HELD THAT:- We noticed that the assessee had not filed the impugned ground of appeal before the ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shraddha Intl. ₹ 29,92,179/- Specific Food Inc. ₹ 1,68,63,587/- ---------------------- ₹ 1,98,55,747/- ---------------------- The assessee has provided advance to the amount of ₹ 4,73,60,562/- to the 15 suppliers parties. The amount of interest expenditure was claimed to the amount of ₹ 16,27,820/-. The assessing officer stated that the assessee has shown sale of ₹ 9,10,49,943/- and debtor of ₹ 42,37,424/-. The assessee had shown sundry creditors for goods to the amount of ₹ 4,23,38,468/- and there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Underlying advances are business advances: At the outset, the advances in question air related to the business of the assessee and have been made out of commercial expediency. Such fact was categorically pointed out before AO and the same has not been denied by either of the lower authorities. Under such circumstances, no disallowance can be made u/s 36(l)(iii) in respect of such advances. Reliance is placed on S.A. Builders vs. CIT - 288 ITR 1 (SC) . Major component of interest expenses represents interest on loans taken for specific business purpose: It is further submitted that major component, of interest expenses represents interest on loans taken for specific purposes as follows and CIT(A) has accepted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation vs. CIT - 298 ITR 298 (SC); In light of the above, impugned disallowance deserves to be deleted. On the other hand ld. departmental representative has placed reliance on the decision of ld. CIT(A). 5. We have heard both the sides and perused the maternal on record carefully. In respect of outstanding advance of ₹ 3.63 crores to M/s. Bajaj Herbal Pvt. Ltd the sister concern of the assessee, the ld. CIT(A) stated that the assessee had mentioned that advance was given for the property named Sarthik (405) but no details were submitted to substantiate the fact. Therefore the ld. CIT(A) held that claim of interest u/s. 36(i)(iii) of the act was not for the purpose of the business of the assessee. In respect of advance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, we are of the view that it would be appropriate to restore this issue to the file of the assessing officer to decide de-novo on the points (i) and (ii) as above after affording adequate opportunity to the assessee. Accordingly this ground of the appeal is restored to the file of the assessing officer for deciding afresh as directed above. Therefore this ground of appeal of the assessee is allowed for statistical purpose. 7. 4th ground of appeal of the assessee of addition of ₹ 2,86,427/- made on account of exchange rate of difference:- We noticed that the assessee had not filed the impugned ground of appeal before the ld. CIT(A). We have also gone through the form No. 35 filed before the ld. CIT(A) and noticed that neither ..... X X X X Extracts X X X X X X X X Extracts X X X X
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