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TMI Blog2017 (5) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... an raised by the assessee from bank were utilized for business of the assessee which could be verified from the Balance Sheet of the assessee. CIT(A) instead of adjudicating the said contentions raised by the assessee rejected the contentions of the assessee on threshold on the grounds that such arguments were not raised by the assessee before the AO. The learned CIT(A) committed an error in not considering the said contentions of the assessee on merits. The learned CIT(A) powers are co-terminus with powers of the AO . The learned CIT(A) should have forwarded the additional evidences to learned AO for seeking remand report as mandated u/r 46A of 1962 Rules for necessary examination, enquiry and verification by the AO of these additional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Commissioner of Income Tax(Appeals) has erred by ignoring the fact that the interest paid on Term Loan was ₹ 14,18,859/- ( out of total interest of ₹ 18,73,834/- ) which was exclusively raised and utilized for purchase of office premises during financial year 2007-08 and utilization of those funds for giving loans to directors is impossible. 1.3. The Learned Commissioner of Income Tax(Appeals) failed to consider that all fact queries raised by the Assessing Officer during the course of hearing were relied accordingly by the Appellant an all information as required by the AO were provided during the course of assessment proceedings by the Appellant . 1.4. Learned Commissioner of Income Tax (Appeals ) failed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) of 1961 Act , which cause averred by the assessee is duly supported by an affidavit dated 13-01-2017 executed by Director of the assessee company averring and deposing reasons for the delay being attributable to ill health of Mr. Austin Miranda who was looking after the affairs of the assessee company who was sick during the relevant period which led to delay in fling of this instant appeal . The learned counsel for the assessee has also made statement before us about truthfulness and correctness of the said affidavit dated 13-01-2017 filed before the tribunal. The said application for condonation of delay and affidavit dated 13-01-2017 are placed in file. Under these factual matrix and circumstance outlining the condonation application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vanced to Director of the assessee company from interest bearing borrowed funds. The assessee claimed that the said advance/loan granted to the Director was erroneously being grouped as advance for properties while the same is in nature of loan/advance to Director on which interest will be recovered from the said Director retrospectively. It was submitted that the said amount advanced to the said director is in the nature of loan/advance as Director has purchased the property out of said funds in Pune in his personal name. The AO rejected the said contention of the assessee while framing assessment order dated 08-03-2013 passed u/s 143(3) of 1961 Act, wherein interest of ₹ 5,65,566/- was added to the income of the assessee. 6. Aggr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early erroneous. It was submitted that learned CIT(A) powers are co-terminus with powers of AO and the learned CIT(A) ought to have considered the said explanations and in terms of Rule 46A of Income-tax Rules, 1962 , the learned CIT(A) could have remanded the additional evidences to AO for remand report. It was also submitted that the learned CIT(A) has also not recorded reasons for non consideration of assessee s explanations and evidences as required under Rule 46A of Income-tax Rules, 1962. The learned counsel for assessee prayed that the matter may be set aside and restored to the file of AO for de-novo determination of the issue on merits by the AO, after consideration of explanation and evidences filed by the assessee in its defense. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee company from interest bearing borrowed funds. The assessee claimed before the AO that the said advance/loan granted to the Director was erroneously being grouped as advance for properties while the same is in nature of loan/advance to Director on which interest will be recovered from the said Director retrospectively. The assessee also submitted before the AO that the said amount advanced to the said director is in the nature of loan/advance to the Director as Director has purchase the property in Pune in his personal name. The AO rejected the said contention of the assessee. Before learned CIT(A) , the assessee made submissions that interest is paid on term loans which were raised in financial year 2007-08 for purchase of prem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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