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TMI Blog2024 (8) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... ng notice issued u/s 148 of the Act cannot be sustained and is hereby quashed and set aside. Decided in favour of assessee. - K. R. SHRIRAM And DR. NEELA GOKHALE , JJ. Dr. K. Shivaram , Senior Advocate a / w. Mr. Rahul K. Hakani for petitioner Mr. Suresh Kumar for respondents ORDER P. C. 1. Petitioner is impugning a notice dated 30th March 2021 issued under Section 148 of the Income Tax Act, 1961 (the Act) for Assessment Year 2015-2016, order dated 2nd February 2022 rejecting petitioner s objections and notice dated 16th February 2022 issued under Section 142(1) of the Act. 2. Admittedly the notice under Section 148 of the Act has been issued more than four years after the expiry of the relevant assessment year and assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of Rs.751.71 lakhs as interest on borrowings. It is stated that the capital and borrowed funds have not been utilized for the business purpose, therefore the interest is required to be disallowed. In view of the RBI's letter dated 22.8.2008 that the assessee company has not accepted public deposits and is functioning as a holding company and 90.41% of the total assets are invested in shares of other companies for the purpose of holding stake. The assessee company has shown short term borrowings at Rs.12,187.87 lakhs and has debited Rs.751. 71 lakhs as interest on borrowings. Considering the RBI's letter dated 22.8.2008 the claim of interest on borrowed funds is not proper and needs disallowance. 1. The assessee company has issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tates As per the Balance Sheet as on 31/03/2015, it is observed that the entire capital, reserve .. .. It is noticed that the assesse has debited an amount of .. .. the capital and borrowed funds have not been utilized for the business purpose, therefore the interest is required to be disallowed . It further states .. .. The assessee company has shown short term borrowings at .. .. and has debited .. .. as interest on borrowings. .. .. the claim of interest on borrowed funds is not proper and needs disallowance . If further states The assessee company has issued and allotted 23293878 equity shares .. .. the entire securities premium .. .. has been invested in the subsidiaries companies. The securities premium should have not been invested i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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