2016 (2) TMI 597

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..... ax (Appeals) confirmed the order of the Assessing Officer without going into the merits of the case. Considering the facts and circumstances, we set aside the order of the Commissioner of Income Tax (Appeals) and remit the disputed issue back to the file of the Commissioner of Income Tax (Appeals) for hearing and the ld.CIT(A) should provide adequate opportunity of being to the assessee and dispose off the appeal on merits.
SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER For The Appellant: Shri. V.S. Jayakumar, Adv For The Respondent : Shri. A.B. Koli, IRS, JCIT. ORDER PER G. PAVAN KUMAR, JUDICIAL MEMBER: The appeal filed by the assessee is directed against order of the Commissioner of Income-tax (A .....

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..... vanc. On the basis of the submission of the assessee the Assessing Officer relied on the decision of Jurisdictional High Court in the case of K. Samasundaram Brothers vs. CIT 238 ITR 939 under the presumption that the assessee had to first utilize the fund for repayment of loan and balance of excess funds should be given for interest free loan. With this finding, the ld.AO disallowed interest amount of :3,93,752/- and passed order 143(3) r.w.s 147 of the Act dated 21.03.2013. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). 5. In appellate proceedings, the ld. Authorised Representative explained the circumstances and bifurcation of loans and advance provided and .....

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..... o the assessee before passing the order and gave a categorical finding that the assessee has not attended appellate proceedings. The ld. Authorised Representative submitted that an adjournment petition was filed and another letter dated 05.06.2015 was filed in the appellate proceedings but inspite of submissions on record, the Commissioner of Income Tax (Appeals) has dismissed the appeal for non-appearance and pleaded for allowing the appeal on merits. 7. Per contra, the ld. Departmental Representative relied on the findings of the lower authorities and vehemently objected to the submissions. 8. We after hearing the rival submissions of both the parties, perused the material on record and also judicial decisions cited the assessee in the .....

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