9911796707
TMI Blog2020 (11) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... reason that the bank statement has not been furnished by the assessee company to prove the utilization of the loan on which interest has been paid for the purpose of its business. Even it is difficult to make out the nature of the additional evidence, presumably entertained by CIT (A) for the reason that it is necessary for deciding the issue, from the impugned order. Entire findings returned by CIT (A) confirming the addition are bereft of plausible reasoning. To enhance the cause of justice, the issue is required to be factually examined in entirety by the AO by examining audited financials of the assessee company and keeping in view the fact that this is a case of loan advanced and availed of by the assessee company to and from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the profit loss account under section 36(1)(iii) of the Income-tax Act, 1961 (for short the Act ) and made addition thereof to the total income of the assessee for Assessment Year 2011-12 on the ground that assessee has not furnished any detail regarding interest expenses paid during the year to work out if such interest and financial expenses paid were exclusively utilized for the purpose of assessee s business only and thereby framed assessment at ₹ 251,93,905/-. 3. Assessee carried the matter before the ld. CIT (A) by way of filing the appeal who has partly allowed the same but confirmed the impugned addition of ₹ 29,23,804/- made by the AO. Feeling aggrieved by the order passed by the ld. CIT (A), the assessee has c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, on the other hand, ld. DR for the Revenue to repel the arguments addressed by the ld. AR for the assessee contended inter alia that sufficient opportunity has been given to the assessee company by the AO as well as ld. CIT (A); that rule of consistency is not applicable to the case at hand as it is to be decided on the basis of its own facts and has also filed written submissions opposing the applicability of rule of consistency and case laws applicable to the proposition at hand, which has been made part of the judicial record. 7. Undisputedly, AO has framed assessment u/s 144 of the Act on account of non-appearance of the assessee company by making ad hoc disallowance of ₹ 29,23,804/-, equivalent to 15% of ₹ 1,94,92,033 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the addition are bereft of plausible reasoning. 9. In these circumstances, we are of the considered view that to enhance the cause of justice, the issue is required to be factually examined in entirety by the AO by examining audited financials of the assessee company and keeping in view the fact that this is a case of loan advanced and availed of by the assessee company to and from its sister concern and during the year under assessment, its turnover has gone up to ₹ 23.41 crores from ₹ 9.92 crores. AO shall provide opportunity of being heard to the assessee company to prove utilization of the loan in question from its evidence as well as from the bank statements. Consequently, the appeal filed by the assessee is allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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