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TMI Blog2022 (7) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... on ble Mumbai High Court in the case of CIT vs. Reliance Utilities Power Ltd. [ 2009 (1) TMI 4 - BOMBAY HIGH COURT] and CIT vs. HDFC Bank Ltd. [ 2014 (8) TMI 119 - BOMBAY HIGH COURT] . This aspect needs to be considered by the AO in making the disallowance which has not been done. Authorities below have shown that there is abnormal increase in sale to related parties, hence the debt is not normal. In our considered opinion, this plank is not acceptable as Revenue authorities are accepting the sales and no disallowance has ever been done in this regard. Moreover, the genuineness of the debtors cannot be doubted without any enquiry in this regard. In this view of the matter, in our considered opinion, the matter needs to be remitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the details in this regard and failed to specify the source and Purpose for which huge loans were given to Guardian Lifecare Pvt. Ltd. which held 19.7% of the assessee's equity share capital and was part of the same group. The sundry debtor in the name of this company was also not a trade debt but a loan from the assessee keeping in view the fact that it amounted to more than the sale during the year. The assessee had both interest bearing funds and the interest-free funds at its disposal. The assessee has claimed interest expense of Rs.2,49,97,235/- and shown interest income of Rs.2,03,19,763/- from related parties in its profit and loss account. In these circumstances and in the absence of any detail by the assessee to prove that int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the trade debt in the name of group concern M/s Guardian Life Care Pvt. Ltd was not a normal trade debt, in view the fact that the total sales of the assessee during the year amounted to Rs.58.61 crore during the F.Y. 2014-15 and Rs.36.86 crore during the financial year 2013-14 and amount shown as trade debt in the name of this concern is more than the total amount of sales. These facts further strengthen the finding of the AO that the loan advanced to group concern in the guise of trade debt. The complete picture in the form of inter group transaction has not been submitted by the Ld. AR. Therefore, in absence of complete corelation in utilization of interest bearing fund with trade debt and the advances given to group concern, it can ..... X X X X Extracts X X X X X X X X Extracts X X X X
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