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TMI Blog2015 (3) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal has exercised the discretion of remanding the matter in view of the reasons recorded herein above, such an exercise of discretion could not be said to be perverse. We do not find that any substantial question of law would arise on such a point. The attempt to rely upon the decision of this Court in case of Rajesh Babulal Damania (2000 (6) TMI 5 - GUJARAT High Court) is ill-founded, because in the said case, the CIT (Appeals), at the appellate stage, had already examined the material and had given finding of facts, which was not appreciated by the Tribunal after considering the material and therefore, the observations were made by this Court in the said decision. Such are not the fact situation in the present case since no material is examined neither by the AO nor by the CIT (Appeals). - Decided against revenue. Disallowance of claim of revenue expenses - Tribunal remanding the issue to the file of Assessing Officer without giving any independent finding and cogent reasons as to how the CIT (Appeals)'s finding were incorrect - Held that:- Discretion exercised by the Tribunal cannot be said to be perverse, which may call for interference in the present appeal before us, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowance of loss of ₹ 2,11,82,046/- to the file of Assessing Officer without giving any independent finding and cogent reasons as to how the CIT (Appeals)'s finding were incorrect despite the Tribunal being the final fact finding authority? [B] Whether the Appellate Tribunal has substantially erred in remitting the issue of disallowance of claim of revenue expenses of ₹ 3,10,49,616/- to the file of Assessing Officer without giving any independent finding and cogent reasons as to how the CIT (Appeals)'s finding were incorrect despite the Tribunal being the final fact finding authority? [C] Whether the Appellate Tribunal has substantially erred in disallowance of claim, rebate and reversal of claims of ₹ 3,92,66,819/- to the file of Assessing Officer without giving any independent finding and cogent reasons as to how the CIT (Appeals)'s finding were incorrect despite the Tribunal being the final fact finding authority? [D] Whether the Appellate Tribunal has substantially erred in remitting the issue of disallowance of claim of writing off ₹ 64,504/- to the file of Assessing Officer without giving any independent finding and cogent reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was required for the AO to verify and the matter is therefore, remanded to the AO. The Tribunal also found the fact that in absence of details, the entire gross profit could not have been disallowed by the AO and the Tribunal found such an approach on the part of the AO as unjustified. 5. Learned counsel for the revenue submitted that if the documents were not produced, the AO was justified in disallowing the entire gross profit and the CIT (Appeals) had rightly conferred with the view of AO. She submitted that the Tribunal, which is ultimate fact finding authority ought to have appreciated the evidence on record and ought to have given the finding of fact as to what extent, the disallowance of the loss could be made and instead that, the Tribunal has given second innings to the assessee, which in her submission, was impermissible. She relied upon the decision of this Court in case of Rajesh Babulal Damania Vs. Commissioner of Income Tax reported at 251 ITR 541 (Guj) and therefore, she submitted that the appeal deserves consideration on the said question raised. 6. In our view, even if the notice was issued calling upon the assessee to produce certain documents and the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y AO, we feel that this factual aspect needs reexamination. We, therefore, remit the matter back to the file of AO for ascertaining the factual position. If the submission of ld. A.R. Is found correct, then the addition made be deleted. The assessee is also directed to submit all the required details before AO. In case, the assessee fails to furnish the required details, A.O. Is free to decide the matter on the basis of material on record. Thus, this ground of assessee is allowed for statistical purposes. 9. We find that considering the facts and circumstances, as observed by us while considering the question A, the discretion exercised by the Tribunal cannot be said to be perverse, which may call for interference in the present appeal before us, which is limited to substantial questions of law. No substantial questions of law would arise as canvassed. 10. On question C, more or less, similar situation has arisen as considered by us while considering question A and B, inasmuch as, the AO disallowed the total claim. In the appeal, the approach of the AO is upheld. The Tribunal in the further appeal has recorded the finding on para 24, which reads as under: 24, We have hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the light of decision of Apex Court in the case of TRF Ltd. (supra) and in accordance with law. The assessee is also directed to furnish the required details promptly to the A.O. In case, the assessee fails to furnish the required details, A.O. shall be free to decide the matter on the basis of material available on record. Thus, this ground of assessee is allowed for statistical purposes. 13. The aforesaid shows that the Tribunal having found that the matter was required to be examined in light of the decision of the Apex Court in case of TRF Limited (supra), the discretion has been exercised relegating the matter to the AO. We do not find that the exercise of discretion could be said as perverse. No substantial questions of law would arise as canvassed. 14. On question E, the AO disallowed the claim for deduction of interest. In the appeal before the CIT (Appeals), no interference was made to the approach of the AO. Whereas the Tribunal in the further appeal observed at para 34 as under: 34. We have heard the rival submissions and perused the material on record. Before us, Id. A.R. has submitted that the investments were made out of interest free funds and not borro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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