Case Law Details
Pr. CIT Vs. Consumer Marketing (India) (P) Ltd. (Gujarat High Court)
From the facts it is apparent that the term loan, on which deduction of interest was sought, had entirely been used for the purpose of purchasing the assets which were hypothecated to the bank. The assessee had also produced sufficient evidence before the assessing officer to indicate that it had sufficient interest free funds to take care of the advances even if the same were accepted to be the advances. The Commissioner (Appeals) has recorded a categorical finding of fact to the effect that the assessing officer has failed to establish any nexus between the borrowings and the utilization of funds. It is in these circumstances, that the Tribunal has recorded a concurrent finding of fact to the effect that it could not be said that interest bearing funds were diverted for non-business purpose. Since the conclusion arrived at by the Tribunal was based upon concurrent findings of fact recorded by it after appreciation of the evidence on record, in the absence of any perversity being pointed out in the findings of fact recorded by the Tribunal, the same did not give rise to any question of law.
Tax deduction at source Under section 194J not applicable on reimbursement of expenses
It is apparent that the assessee had deducted the TDS in respect of the payment made to the C & F agent and separate bills had been raised in respect of reimbursement expenses incurred by the agent. Since the reimbursement bills were separately raised, there was no requirement to deduct TDS in respect thereof. Under the circumstances, it cannot be said that there is any legal infirmity in the impugned order passed by the Tribunal in holding that dis allowance under section 40(a)(ia) of the Act could not be made in respect of reimbursement bills which were separately raised as no TDS was required to be deducted in respect thereof. Under the circumstances, the impugned order passed by the Tribunal does not give rise to any question of law, much less a substantial question of law, as proposed or otherwise.
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