M/S. LMJ OVERSEAS LTD.,KOLKATA vs. ITO, WARD-8(3), KOLKATA, KOLKATA

The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in disallowing the interest expenses amounting to Rs.10,18,139/-.

I have heard Ld. Sr. DR and gone through facts and circumstances of the case. I find that the assessee has borrowed a sum of Rs.1.5 cr. from the bank and transferred the same to a sister concern LMJ Distributors Pvt. Ltd. without charging any interest. The assessee claimed before the AO as well as before CIT(A) that this loan is given out of business expediency but he failed to produce any evidence. I find that the assessee filed evidences before me in respect to loan advanced to sister concern LMJ Distributors Pvt. Ltd. and purpose of the same. As these evidences are new evidences and these require verification, hence, this issue needs reconsideration at the level of AO. Hence, I set aside the issue to the file of AO for reconsideration. Appeal of assessee is allowed for statistical purposes.

In the result, the appeal of assessee is allowed for statistical purposes. 5. Order is pronounced in the open court on 11.12.2015