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TMI Blog2019 (5) TMI 2000X X X X Extracts X X X X X X X X Extracts X X X X ..... n the ld.AO cannot assume interest income by merely observing that loans were given before availability of interest free funds. Assessee has been showing excess interest free funds. Out of which it could be assumed that these advances were made. This plea of the assessee cannot be rejected merely by observing that loans were given before 1.4.2006. There is no logic in the stand point of the CIT(A). Every year is an independent assessment year and even if the assessee has been charging interest on the advances given by him, but after a particular date, it can stop charging interest by treating the advance as given from interest free funds. In the present case, the assessee has demonstrated that it is having sufficient interest free funds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t free fund to cover the said interest free advances. However, the Learned AO disallowed such interest expenses to the tune of Rs.4,61,419/- on the ground that the said interest related to borrowed fund, which were not used for business purpose. The Learned CIT(A) in appeal relying upon the decision passed by his predecessor in appellant s own case for A.Y. 2011-12 upheld such disallowance, hence appeal preferred by the assessee is before us. 3. At the very outset of the matter, the Learned Counsel appearing for the assessee submitted before us that Learned Tribunal in ITA No.3436 3437/Ahd/2014 for A.Y. 2010-11 2011-12 in assessee s own appeal dealt with the similar issue and decided the same in favour of the assessee by deleting suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld.counsel for the assessee at the very outset submitted that similar disallowances were made in the assessment years 2007-08 and 2008- 09. The issue travelled upto the Tribunal and the Tribunal upheld deletion of disallowance vide its order dated 8.3.2013 passed in ITA No.2618/Ahd/2010 and 757/Ahd/2012 and appeals of the Revenue have been dismissed by the Tribunal. Copy of the Tribunal s order has been placed on page nos.85 to 93 of the paper book. 5. With the assistance of the ld.representatives, we have gone through the record carefully. It is pertinent to observe that before the ld.Revenue authorities the assessee has demonstrated availability of share capital at Rs.1.71 crores. Reserves and surplus of Rs.23.73 lakhs and inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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