Case Law Details
CA Sandeep Kanoi
AO while making this addition has observed as under:-
“5. Addition on account of interest not charged on Advances:
On perusal of Balance sheet of the assessee, during the course of assessment proceeding, it is seen that the assesses has stated Rs.92,24, 794/- as other advances, out of which he has shown interest received from 2 partiesn (1) Gaurav Industries and (2) Amtex Dye Chem Industries to the extent of Rs. 11,16,069/- and Rs.5,46,874/- respectively. The assessee is showing interest income of Rs.6, 71,530/- as interest received from the above two parties. Rs. l,36,745/- from Gaurav Industries and Rs.5,34,785/-from -Amtex Dye Chem Industries. The assessee has claimed the Credit of TDS and offered Corresponding interest amount from the said 2 parties. Since the said amounts were included in the total advances of Rs. 92,24,794/- but the assessee at his convenient showing interest on loans and advances. Since the TDS credit is avail the interest income is offered. The assesses has not offered interest income from the following parties to whom an aggregate amount of Rs. 77,76,005/- is offered during the F. Y.2007-08.
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