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TMI Blog2022 (12) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... pitalised by the assessee and carried to Balance-Sheet. Appeal filed by the assessee is partly allowed. - ITA No. 530/Mum/2022 - - - Dated:- 6-10-2022 - SHRIKULDIP SINGH, JUDICIAL MEMBER AND SHRI GAGAN GOYAL, ACCOUNTANT MEMBER FOR THE Appellant Ms. Vinita Shah FOR THE RESPONDENT Sh. K.C. Kanojiya, CIT-DR ORDER PER GAGAN GOYAL, A.M: This appeal by the assessee is directed against the order of Ld. Commissioner of Income Tax (Appeals)-47, Mumbai [hereinafter referred to as [ CIT(A) ] dated 10.02.2021 passed under section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as [ the Act ] for the Assessment Year (AY) 2007-08. The assessee has raised the following grounds of appeal: 1. On the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gain filed return of income at Rs NIL. 3. During the Year under consideration AO observed that assessee had taken a sum of Rs 4,64,37,500/- as cash loan and repayment of the loan in cash amounting to Rs 1,89,37,500/-. AO treated both the sums as violation of sec 269SS r.w.s 271D and 269TT r.w.s. 271E. Considering these cash loan taken and repaid, assessing officer further made an addition of Rs 1,00,27,875/- on account of interest paid on cash loan taken u/s 69C. during the assessment proceeding AO further observed that the assessee incurred interest of Rs 17,17,406/- as interest on loan (other than cash loan). However as no business has commenced in the relevant AY and assessee treated this amount of interest as preoperative expenses an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this an amount of Rs 84,47,690/- is transferred to its sister concern (c) Whatever be the amount of interest, assessee has not charged the same to its P L Account u/s 36(1)(iii). (d) Other than unsecured loan of Rs Rs 1,18,45,000/-assessee has its own fund also amounting to Rs 45.12 lacs. While calculating proportionate disallowance this amount of own funds were not considered by the authorities below. (e) Even if for the time being version of authorities below is accepted, still no addition to the total income of the assessee can be made. As the assessee has not charged any interest to its P L Account. 7. In view of the above observation we direct the AO to work out the figure of interest disallowance considering the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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