ITAT Ahmedabad Judgments — May 2019

The Tribunal held that the assessee had fulfilled the ingredients of Section 68 by providing confirmations from creditors and demonstrating repayment through account payee cheques. Mere non-submission of ITR copies was not a sufficient ground for rejection.

The Tribunal held that the assessee had sufficient interest-free funds to cover the advances, and therefore, the interest expenses on borrowed funds used for these advances should not be disallowed. The disallowance made by the lower authorities was deleted.

The Tribunal upheld the CIT(A)'s orders, dismissing the revenue's appeals. It found that the issues raised were identical to those decided in favor of the assessee by co-ordinate benches, and the revenue could not controvert the assessee's submissions.

The Tribunal held that since the assessee had sufficient interest-free funds exceeding the interest-free advance given, no disallowance of interest expenditure was warranted. This decision was supported by a High Court ruling.

The Tribunal held that the write-back of excess provisions for NPA and diminution in investments, which were not allowed as deductions in earlier years, should not be taxed in the year of write-back. The decision was based on previous ITAT judgments on similar issues.

The Tribunal presumed that the assessee was not interested in prosecuting the appeal due to non-appearance. Consequently, the appeal was dismissed for want of prosecution.