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TMI Blog2020 (6) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... s purposes and consequently, interest incurred thereon cannot be claimed as deduction - HELD THAT:- CIT(A), in first appeal, has confirmed the aforesaid action of disallowance by AO placing reliance on the order of the CIT(A) on similar facts concerning AY 2011-12 but the disallowance made by the Revenue authorities on similar facts has been reversed by the ITAT for the same assessee. Similar r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tilities Power Ltd. [ 2009 (1) TMI 4 - BOMBAY HIGH COURT] and similar approach adopted by the co-ordinate bench in earlier years, we find sufficient reasons to admit the claim of the assessee for reversal of disallowance favourably. Decided in favour of assessee. - SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SMT. MADHUMITA ROY, JUDICIAL MEMBER For the Appellant : Shri Bhavin Marfat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the addition. The ld. CIT(A) has failed to appreciate that the Appellant had sufficient interest free funds to cover the interest free advances to the Appellant's sister concern in relation to the above disallowance. The ld. CIT(A)-I has also failed to appreciate that the said interest free advances were provided by the Appellant to its sister concern for business purpose and with a clear c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereon cannot be claimed as deduction in view of the provision of Section 36(1)(iii) of the Act. The CIT(A), in first appeal, has confirmed the aforesaid action of disallowance by AO placing reliance on the order of the CIT(A) on similar facts concerning AY 2011-12. It is submitted on behalf of the assessee that the disallowance made by the Revenue authorities on similar facts has been reversed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umption would arise that interest free advances were lent from interest free funds and not borrowed funds. 5. In view of the decision of the Hon ble Bombay High Court in the case of CIT vs. Reliance Utilities Power Ltd., [2009] 313 ITR 340 (Bom.)and similar approach adopted by the co-ordinate bench in earlier years, we find sufficient reasons to admit the claim of the assessee for reversal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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