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TMI Blog2020 (10) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... quiry by issuing notice, probably correct factual decision would have been ascertained. This aspect had not been dealt with in the impugned order passed by the Tribunal. As mentioned earlier, the Tribunal proceeded on a totally different footing, which neither appears to be the case of the assessee nor that of the Revenue. The assessee cannot be worse off before the Tribunal in his own appeal. Considering the facts and circumstances of the case and taking note of the nature of business activities done by the assessee, we deem it appropriate to set aside the orders passed by the AO, the CIT(A) and the Tribunal and remand the matter to the AO for a fresh consideration. Above tax case appeal is allowed, the orders passed by the AO, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 57(iii) amounts to a review of accepted views by the Department in the earlier years? And iii. Whether, in the facts and circumstances of the case, the interest expense claimed under Section 57(iii), not being a capital expense and having corresponding income offered under the income from other sources, be disallowed by the Assessing Officer on the ground of commercial expediency of loans obtained by the assessee? 4. The assessee is an individual and is said to be a partner in five family run partnership firms, which were established in 1980s. The assessee filed the return of income for the assessment year under consideration namely AY 2011-12 on 27.6.2012 admitting a total income of ₹ 11,82,660/-. The case was selected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest paid to them had been offered to tax. The CIT(A), on considering the facts noted by the Assessing Officer, dismissed the appeal primarily on the ground that the assessee failed to produce necessary evidence to establish his claim for interest payment to the relatives nor made out any case for deduction of such interest under Section 57(iii) of the Act. 7. As against the order passed by the CIT(A), the assessee preferred further appeal before the Tribunal by contending that the interest paid were all loans, which were borrowed in the prior years and which had been allowed as deduction year on year and the CIT(A) had not considered the statement of confirmations given evidencing that no new loan was taken during the financial year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... none of the years, there was a scrutiny assessment under Section 143(3) of the Act. However, the assessments for the previous years had not been disturbed by the Revenue. Neither they were selected for scrutiny nor there was a reopening by way of issuance of a notice under Section 148 of the Act. Therefore, the assessments could not have been brushed aside and an attempt ought to have been made to examine the genuineness of the stand taken by the assessee especially when the assessee contended that he is a partner in five firms, which were all established in 1980s. 10. That apart, the assessee specifically stated that the loans were availed through banking channels and the interest amounts were paid to the lenders, who have disclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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