9911796707
TMI Blog2024 (11) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... n on account of low household expenses - AO made addition by taking view that total household expenses withdrawal or assessee and his family which is not sufficient for four members in the family in Y category of city - assessee vehemently argued that the assessee has shown sufficient withdrawals for his household expenses, the assessee has withdrawn Rs. 78,400/-. The wife of assessee has also shown withdrawal of Rs. 60,000/-. The family of assessee consists himself, his wife, two minor children one children is school going and assessee resides in the house owned by his father. Assessee s withdrawal shown by assessee are sufficient to meet day-to-day expenses - HELD THAT:- As no benefit of withdrawal of Rs. 78,400/- is allowed by Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oaded on the portal on20/07/2022 whereas the order was passed by LD CIT(A), NFACC on 02/08/2022. 3.1 The addition may be kindly deleted. 3.2 Personal hearing may be granted. 3.3 Any other relief that your honours may deem fit maybe granted. 4. The assessee craves leave to add, amend, modify alter or delete any of the grounds at the time of hearing. 2. Rival submissions of both the parties have been heard and record perused. The Ld. Authorized Representative (Ld.AR) for the assessee submits that there is delay of 597 days in filing appeal before Tribunal. The impugned order was passed by ld. CIT(A) on 02.08.2022, however, this appeal is filed before Tribunal on 21.05.2024. The Ld.AR for the assessee submits that delay in filing appeal was ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer made addition / disallowance under section 36(1)(iii) of the Act on account of interest free advance by assessee by taking view that assessee has paid interest on various parties and has not charged any interest on the money landed by assessee. The Ld. AR for the assessee submits that interest free funds for such money even otherwise the money was advance for the purpose of business. It is settled position under law that when interest free funds were available to assessee which was sufficient to meet its investment in its subsidiary. The Revenue Authority were not justified in allowing claim of deduction on similar year. The assessee entitled for relief. The Ld. AR for the assessee submits that he has already placed on record co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. 4. I have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. First I will consider the plea of condonation of delay of 597 days in filing appeal. Before me, Ld. AR for the assessee has explained the fact that assessee was under bona fide that Ld.CIT(A) would be considered the rectification application though Ld.CIT(A) neither considered the grievance of assessee nor rejected it for sufficient time. On overall considering the explanation offered by the ld AR of the assessee that the assessee under bonafide belief was pursuing alternative remedy before ld CIT(A) in seeking rectification of the order. Such facts are not disputed by revenue. Therefore, keeping in view fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per needs on which neither interest is charged nor interest is given as the interest amount are nominal. The amount of loan is adjusted in debit or against in credit entry. The assessee has received and given interest free loan to Shreeji Creation and Swastik Creation. The Assessing officer disregarded the submission of assessee and made addition of Rs. 1,10,895/- on proportionate basis. The ld. CIT(A) confirmed the action of Assessing Officer. I find that neither the assessee has paid interest on short borrowings nor charged any interest on the advances given for short periods. Rather the assessee was having running account with both the parties, therefore, there was no justification for making disallowance of interest expenses. In the res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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