The Pr. Commissioner of Income-tax -5 v. Jetair Pvt. Ltd
[Citation -2019-LL-0719-75]

Citation 2019-LL-0719-75
Appellant Name The Pr. Commissioner of Income-tax -5
Respondent Name Jetair Pvt. Ltd.
Relevant Act Income-tax
Date of Order 19/07/2019
Assessment Year 2011-12
Judgment View Judgment
Keyword Tags finance charge • interest free loans • sister concern

IN HIGH COURT OF DELHI AT NEW DELHI ITA 232/2019 PR. COMMISSIONER OF INCOME TAX -5 Appellant Through: Mr Ruchir Bhatia, Senior Standing Counsel for Revenue. versus JETAIR PVT. LTD Respondent Through: None. CORAM: JUSTICE S.MURALIDHAR JUSTICE TALWANT SINGH ORDER % 19.07.2019 1. Revenue is in appeal against order dated 19 th September, 2018 passed by Income Tax Appellate Tribunal ( ITAT ) passed in ITA No.2713/Del./2015 for Assessment Year ( AY ) 2011-12. 2. question sought to be urged by Revenue is whether ITAT was right in affirming order of Commissioner of Income Tax (Appeals) [ CIT (A)] which deleted disallowance for Rs. 1,48,28,000/- by Assessing Officer (AO) on ground that these were paid as finance charges by Assessee. 3. basis for AO to disallow above amount was on surmise that Assessee had provided interest-free-loans to its subsidiary sister concerns and, therefore, it required to be added back as finance charges paid during AY in question. 4. As rightly pointed out by CIT (A), which has been concurred with by ITAT, perusal of accounts showed that Assessee had substantial capital and interest-free funds available with it, for giving such loans as advances. In fact, there was no enquiry into this aspect undertaken by AO, whereas CIT(A) undertook that exercise, and came to above conclusion. 5. In that view of matter, no substantial question of law arises in present appeal from impugned order of ITAT. appeal is accordingly dismissed. No costs. CM 11826/2019 (exemption) 6. Allowed, subject to all just exceptions. S. MURALIDHAR, J. TALWANT SINGH, J. JULY 19, 2019 rd Pr. Commissioner of Income-tax -5 v. Jetair Pvt. Ltd
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