9911796707
TMI Blog2015 (3) TMI 1309X X X X Extracts X X X X X X X X Extracts X X X X ..... the root of the issue, we admit the same and restore the issue back to the file of CIT(A) to adjudicate the issue after verifying the documents furnished by the assessee by way of additional evidences. We remit the issue back to the file of CIT(A), who shall decide the issue after affording reasonable opportunity of hearing to the assessee. The grounds of appeal raised by the assessee are thus, allowed for statistical purposes. Addition of Creditors - Held that:- The assessee had also furnished confirmations from the said parties and has also furnished the Ledger accounts of the previous years, which reflect business transactions with the said parties. However, the said ground of appeal was not pressed before the CIT(A) and hence, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 143(3) of the Income-tax Act, 1961. 2. The assessee has raised the following grounds of appeal: 1. The learned CIT(A) erred on facts and in law in upholding disallowance of notional interest of ₹ 14,43,000/- on advances/share application money of ₹ 1,11,00,000/- to M/s. Shrinivas Machine Crafts P. Ltd. on the ground that the said advance was for acquiring shares. He failed to appreciate that the advance was in furtherance of the business of the assessee. He also failed to appreciate the arguments and contentions advanced in this behalf. 2. The appellant craves leave to add, alter, delete or substitute all or any of the above grounds of appeal. 3. The brief facts of the case are that, the assessee was eng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny income, hence, the interest on the same was disallowed under section 36(1)(iii) of the Act and total disallowance of ₹ 22,36,000/- was made. 4. The CIT(A) upheld the interest expenditure relatable to two advances made by the assessee i.e. M/s. Bison India Ltd. and Shri Manoj Ambike. As regards the advance of ₹ 1,11,00,000/- to M/s. Shrinivas Machine Crafts Pvt. Ltd., the CIT(A) noted that the same was given for acquiring shares, which could not be considered as expenditure in the nature of business. Therefore, disallowance of interest expenditure relatable to the same was upheld. The CIT(A) restricted the disallowance to ₹ 15,47,000/-. 5. The assessee is in appeal against the disallowance of notional intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Authorized Representative for the assessee has raised a new plea that factually, there was no nexus between the borrowed funds and the advances made to the said parties. In support thereof, the assessee has furnished by way of additional evidence the bank statement showing working of bank account on the relevant dates of advances. The said evidences filed by the assessee are by way of additional evidence. However, since the additional evidence goes to the root of the issue, we admit the same and restore the issue back to the file of CIT(A) to adjudicate the issue after verifying the documents furnished by the assessee by way of additional evidences. We remit the issue back to the file of CIT(A), who shall decide the issue after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th books of account for verification and in the absence of any information or production of parties, the creditors to the extent of ₹ 4,56,45,562/- remained unverified and were added as income of the assessee. 12. Before the CIT(A), the assessee did not press the said ground of appeal and the same was dismissed as not pressed. 13. The assessee however, before us has furnished an application for admission of the additional ground of appeal and also a request for admission of additional evidence, in this regard. The plea of the assessee before us was that there was Survey at the premises of the assessee on 06.11.2012 and during the course of Survey, the Managing Director of the assessee under pressure and fear accepted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Authorized Representative for the assessee was that no addition was warranted. 15. The learned Departmental Representative for the Revenue placed reliance on the order of CIT(A). 16. We have heard the rival contentions and perused the record. The assessee by way of additional ground of appeal has raised an issue against the addition made on account of un-verifiable creditors totaling ₹ 4.56 crores. The assessee had raised the said issue before the CIT(A) vide ground of appeal No.2. From the perusal of Paper Book submitted to the CIT(A), copy of which is placed on record, we find that the assessee had also submitted written submissions in this regard. The assessee had also furnished confirmations from the said p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
