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TMI Blog2019 (9) TMI 1722X X X X Extracts X X X X X X X X Extracts X X X X ..... e CBUs wherein the assessee provides working capital to these CBUs to enable them to procure materials and carry out large scale manufacturing of alcoholic beverages and deliver the same to the assessee s customers on its behalf. Thus, from this it is clear that working capital loan was taken by the assessee for its business purpose and use for business purposes only. CIT(A) was right in deleting this disallowance. Ground No. 1 of the Revenue s appeal is dismissed. Disallowance on account legal Professional Fee Expenses and warehousing and demurrage charges - CIT(A) deleted addition - HELD THAT:- As admitted position that during the year there was no business activity, but during the said period the assessee incurred expenses on the mainten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss of Rs. 3,62,52,720/-, under normal provisions of the Act. The Assessment u/s 143(3) of the Act, was completed by the order dated 16.03.2015, which was rectified u/s 154 vide order dated 19.08.2015, at total loss of Rs. 13,39,193/-, as against the returned loss of Rs. 3,62,52,720/-, after making the following additions on account of: i) Disallowance of interest paid on loan :Rs.2,79,11,315/- ii) Disallowance of legal professional charges :Rs. 61,87,589/- iii) Disallowance of warehouse demurrage charges:Rs. 27,67,483/- 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. DR submitted that as regards to ground no. 1, the CIT(A) erred in del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and carry out large scale manufacturing of alcoholic beverages and deliver the same to the assessee s customers on its behalf. Thus, from this it is clear that working capital loan was taken by the assessee for its business purpose and use for business purposes only. Therefore, the CIT(A) was right in deleting this disallowance. Ground No. 1 of the Revenue s appeal is dismissed. As regards to Ground Nos. 2 and 3, it can be seen that it is an admitted position that during the year there was no business activity, but during the said period the assessee incurred expenses on the maintenance of its business establishment. During the said year, the Assessing Officer has not pointed out any bogus or expenditure of personal nature, which will war ..... X X X X Extracts X X X X X X X X Extracts X X X X
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