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TMI Blog2022 (8) TMI 1479X X X X Extracts X X X X X X X X Extracts X X X X ..... sponding receipts along with cheques. CIT(A) has taken cognisance of the same referring to the bills and invoices towards warehouse rent and recipient as party has already paid due tax thereon. Therefore, ground of Revenue s appeals are dismissed. Addition on account of interest payment u/s. 36(1)(iii) - CIT(A) deleted addition - HELD THAT:- CIT(A) has rightly observed that CFS bill account shows that sizable amount of payables by the assessee to GFPL, thus the assessee was having sufficient fund and the assessee has established the nexus between the interest-free advance and the interest-bearing loans. The books of account of the assessee also show this fact. In fact, the assessee earned positive income of more than Rs.5 Crores which in an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsons covered u/s. 40A(2)(b) and not expedient to business expenditure. 2. On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the A.O. 3. It is, therefore, prayed that the order of the CIT(A) be set aside and that of the AO be restored to the above extent." IT(SS)A No. 126/Ahd/2016 - A.Y. 2010-11 "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in law and/or on facts in deleting the addition of Rs.2,86,59,222/- on account of warehouse rent being excessive payment to persons covered u/s. 40A(2)(b) and not expedient to business expenditure. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng S. 142(2A) of the Act" C.O. No. 99/Ahd/2016 - A.Y. 2010-11 "1. The learned CIT(A) has erred in law and on facts in refusing to expunge the AO's unwarranted observation in the assessment order imputing "non-cooperative attitude" on the part of the appellant holding that there is no positive evidence on record justifying expungement thereof and in holding that no prejudice is caused to the appellant on account of the same, disregarding the material placed on record in the appellate proceedings. 2. The learned CIT(A) has further erred in law and on facts in disregarding the material placed before him and holding that the action u/s. 142(2A) of the Act for assigning the case for special audit at the fag end of limitation for complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) partly allowed the appeal of the assessee. 5. The Ld. DR submitted that the CIT(A) erred in deleting the addition on account of warehouse rent being excessive payment to persons covered under Section 40A(2)(b) and not expedient to business expenditure. 6. The Ld. DR submitted that it is an admitted fact by the assessee that there is no agreement in writing for the rent with Sister Concern and others. The assessee has not submitted any documentary evidence regarding its claim of such expenses. The assessee has not furnished any reasons for increasing of warehouse rent as compared to the earlier year. Thus, this is nothing but accommodation entry just to avoid the legitimate payment of tax. As regards ground no.2 in A.Y. 2010-11, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the corresponding receipts along with cheques. The CIT(A) has taken cognisance of the same referring to the bills and invoices towards warehouse rent and recipient as party has already paid due tax thereon. Therefore, ground no.1 for A.Y. 2009-10 and 2010-11 of Revenue's appeals are dismissed. 9. As regards ground no.2 of Revenue's appeal in A.Y. 2010-11 the CIT(A) has rightly observed that CFS bill account shows that sizable amount of payables by the assessee to GFPL, thus the assessee was having sufficient fund and the assessee has established the nexus between the interest-free advance and the interest-bearing loans. The books of account of the assessee also show this fact. In fact, the assessee earned positive income of more than ..... X X X X Extracts X X X X X X X X Extracts X X X X
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