148 Taxman 654 (Cal.) and (f) CIT v. Motor Sales Ltd.

Express Airtronics P.Ltd, Mumbai vs. ITO 2(1)(3), Mumbai

The appeal is allowed for statistical purposes

Bench: Shri Sandeep Gosain & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.1402/Mum/2016 (नििाारण वर्ा / Assessment Year : 2011-12 बिाम/ Express Airotronics Pvt. Ito 2(1)(3), Mumbai Ltd., (Now Merged With Net Work Telelink Private Ltd.) V. B-14 Valmiki Apartments, Next To Bombay College Of Pharmacy, Sunder Nagar, Kalina, Mumbai 400098 स्थायी ऱेखा सं./ Pan: Aaace0826H (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: None Revenue By: Shri. D.G. Pansari (Dr) सुनवाई की तारीख /Date Of Hearing : 27.03.2019 घोषणा की तारीख /Date Of Pronouncement : 29.03.2019 आदेश / O R D E R Per Ramit Kochar: This Appeal, Filed By Assessee, Being Ita No. 1402/Mum/2016, Is Directed Against Appellate Order Dated 02.12.2015 In Appeal No. Cit(A)-4/It-14/Ito-2(1)(3)/2014-15, Passed By Learned Commissioner Of Income Tax (Appeals)-4, Mumbai (Hereinafter Called “The Cit(A)”), For Assessment Year 2011-12, The Appellate Proceedings Had Arisen Before Learned Cit(A) From The Assessment Order Dated 14.03.2014 Passed By Learned Assessing Officer (Hereinafter Called “The Ao”) U/S 143(3) Of The Income-Tax Act, 1961 (Hereinafter Called “The Act”) For Ay 2011-12. I.T.A. No.1402/Mum/2016

…the board of directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case Further reliance may be placed on the decision of Hon’ble Allahabad High Court in the case of CIT v. Motor Sales Ltd [2008] 304 ITR 123, wherein it was held that it was finding of fact as found in the case that respondent-assessee had capital/ reserve/ surplus of Rs. 6.10 crores on which no interest was being paid and therefore interest free advances made I.T.A. No.1402/Mum/2016 by it are covered and ultimately held that there is no question of any disallowance of notional inte…