9911796707
TMI Blog2015 (2) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... to the circumstances that the assessee in fact maintained the mercantile system of account, the failure of the AO to exert himself and requisition the books of account and other material from the M/s. Escorts Ltd. if he felt that in fact such amounts were payable contractually or otherwise, in our opinion, could not have resulted in the addition which was ultimately directed. Having regard to these circumstances, this Court is of the opinion that the assessee, on the basis of the materials on record, was entitled to succeed on this question and the ITAT wrongly interfered with the CIT (Appeals)’s determination. Accordingly, the impugned order is set aside. - Decided in favour of assessee. - ITA 17/2015, C.M. APPL.159-160/2015 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... borrower refused to pay any proportionate interest on the plea that the entire deposits had been recalled mid year. Before the CIT (Appeals), the assessee sought to adduce additional evidence under Rule 46A of the Income Tax Rules in the form of a letter written by M/s. Escorts on 25.08.1998. The assessee had also relied on an auditor s note, indicating that steps to recover the amount had been made by the company. 3. The CIT(Appeals) accepted the assessee s explanation and directed dilution of the said amount ofRs. 8.75 lakhs. The CIT (Appeal) s reasoning is as follows: 13. It is undisputed that a loan of ₹ 1.40 crore was given to M/s. Escorts Ltd. It is also not in dispute that till 31/3/1998, M/s. Escorts had pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled. Importantly, the confirmation from M/s Escorts Ltd. dated 25/8/1998 also suggests likewise. It states as under: Dated: 25th August - 1998 The Director All Grow Finance Investment Private Limited B-105, Greater Kailash Part-1 New Delhi: 110048. Sub: Repayment of your Loan of ₹ 1.40 Crores. Sir, With reference to the captioned subject, as requested by your goodself we are herewith attaching our cheque No. 915778 drawn on HDFC Bank Ltd. New Delhi of ₹ 1,40,00,000/- (Rupees One crore forty lac only) towards full satisfaction of Inter Corporate Deposit given by you to our company. Further, as regards to the payment of up to date interest as per the discussion held with you, we can not pay the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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