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TMI Blog2022 (8) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the disallowance by following the decision rendered by the Tribunal in assessee s own case in A.Y. 2008-09. Thus we notice that the assessee has done an accounting adjustment only, which may not lead to double deduction as presumed by the AO. Accordingly, following the order passed by the Tribunal in AY 2009-10, we confirm the relief granted by learned CIT(A) on this issue. Disallowance of interest expenditure relating to loan given to the subsidiary - AO noticed that the assessee has advanced interest free loan to its subsidiary, group and associate companies, accordingly he disallowed proportionate interest expenditure u/s 36(1)(iii) - HELD THAT:- We notice that the Tribunal has deleted identical disallowance made in the earlier years on the ground that the loans to subsidiaries group companies have been given out of own funds. During the current year, it is noticed from the order passed by Ld CIT(A), the outstanding amount of loan due from sister concerns - However, we could not find details of own funds/interest free funds available with the assessee. In the absence of relevant details, we have no other option but to restore this issue to the file of AO for examin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Officer by filing appeal before learned CIT(A) and which was partly allowed. 3. Aggrieved by the order passed by learned CIT(A) in granting relief in respect of above said issues, the Revenue has filed this appeal before us. 4. The first issue relates to disallowance of expenses under section 14A of the Act. 5. During the year under consideration the assessee did not receive any dividend and hence did not make any disallowance under section 14A of the Act. The Assessing Officer however computed disallowance as per Rule 8D and accordingly disallowed a sum of Rs. 67,77,174/- under rule 8D(2)(iii), being 0.5% of average value of investment. The Learned CIT(A) deleted the disallowance by following the decision rendered by him in A.Y. 2009-10 2010-11. 6. We have heard the parties on this issue. Since the assessee has not earned in dividend income, no disallowance is called for as per the decision rendered by Hon'ble Delhi High Court in the case of PCIT Vs. Il Fs Energy Development Company (250 Taxman 0174). Since the decision rendered by Ld CIT(A) gets support from the above said decision, we do not find any reason to interfere with the order passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra). We have further noted that the Han'ble jurisdiction High Court by considering the decision of Herdilla Chemicals Ltd. held that write off claimed is essential on the basis of obsolesces of any particular equipment that claimed as write off, which is essentially on account of deterioration of various material including raw-material over a period of time due to wear and tear and that assessee would be entitled to write off in Profit toss Account. We have further noted that the assessee's similar claim for A. Y, 2010- 11 and 2011-12 has been allowed by First Appellate Authority in order dated 17.11,2016 and 20.03.2017 respectively. Therefore, considering the peculiarity of fact for the year under consideration, we are of the view that the assessee is entitled for inventory written off, however for limited purpose, the issue is restored to the file of Assessing Officer to verify the fact, if equivalent provision thereof had been made in the books and there is no impact: on Profit Loss Account and allow the relief to the assessee in accordance with law. In the result, this ground of appeal is allowed for statistical purpose. 10. There being no material differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue is recurring issue from A.Y. 2002-03 to the year under consideration. We have further noted that the coordinate bench of Tribunal in assessee's own case for A.Y. 2006-07 in ITA No.5539/Mum/2011 dated 05.04.2017 passed the following order: 6. The one more issue in ITA No. 5533/Mum/2011 for AY 2006-07 of assessee's appeal is as regards to the disallowance of interest on loans to subsidiaries at Rs.42,71,250/-. 7. At the outset, the teamed Counsel for the assessee stated that these are old loans and Tribunal in ITA No. 3603/Mum/2009 for AY 2005- 06 vide order dated 28-02 2017 has considered the issue following Tribunals order in assessee's case for AY 20024)3 and 2003-04 by observing in Para 28 as under: - 28. We have considered the submissions of the parties and perused material available 091 record. Though, the learned Authorised Representative had submitted before us that the issue is covered by earlier orders of the Tribunal for assessment year 2002-03 and 2003- 04, however, after carefully examining the facts of the present case, vis-a-vis the orders of the Tribunal for the earlier assessment years, we find little difference in the facts. Undisputedly in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is reduction in loans and advances what was in earlier years. We find that this issue is squarely covered in favour of assessee and against Revenue by the decision of the Tribunal in assessee's own case. Hence, respectfully following the same we allow the claim of the assessee. The orders of the lower authorities are set aside and this issue of assessee's appeal is allowed. 8. In view of the above the learned Counsel for the assessee stated that loans advances which are under consideration have a/ready been considered by the Tribunal in earlier years and decided the issue in favour of assessee allowing the claim of the assessee. The learned Counsel for the assessee stated that the issue now stands covered in favour of assessee. On the other hand, the learned Sr. DR fairly conceded that there is reduction in loans and advances what was in earlier years. We find that this issue is squarely covered in favour of assessee and against Revenue by the decision of the Tribunal in assessee's own case. Hence, respectfully following the same we allow the claim of the assessee. The orders of the lower authorities are set aside and this issue of assessee's appeal is allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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