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TMI Blog2022 (2) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... verify the contentions of the assessee. The entire disallowance is based on surmises and conjectures and therefore cannot be appreciated. We are therefore inclined to remand this issue to the Ld. CIT(A) to carry out necessary verification in respect of the details filed by assessee. The assessee is thus directed to file all the relevant documents in support of its contention and the utilisation of the loan amount. CIT(A) is directed to pass detailed order on merits in accordance with law. Needless to say that proper opportunity of being heard must be granted to assessee. Grounds raised by assessee stands allowed for statistical purposes - ITA No. 85/Bang/2018 - - - Dated:- 31-1-2022 - SHRI. CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght Petroleum and is engaged in the business of retail trading of petroleum products which is petrol, diesel, oil etc. During the assessment proceedings, the Ld. AO noted that assessee is 60% partner in M/s. Bright Construction Corporation. From the details filed, the Ld. AO noted that assessee took loan from Standard Chartered Bank on 18.06.2007 amounting to ₹ 1,41,00,000/-. 2.2. Further on perusal of statement of affairs for year ended 31.03.2011, the Ld. AO noted that assessee has capital of ₹ 2,20,12,148/- and the loan from Standard Chartered Bank was shown at ₹ 1,16,35,476/-. It was also noted by the Ld. AO that, assessee invested in fixed assets amounting to ₹ 1,29,57,296/- and the investments held by assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 1,22,48,274 in his own proprietary concern M/s. Bright Petroleum. The business balance sheet of M/s. Bright Petroleum reveals that an amount of ₹ 1,28,15,487 has been invested in the partnership firm of the appellant M/s. Bright Construction Corporation where the appellant is a partner having 60% share in the profits. The claim of the appellant that the loan has been utilized for the business purpose of Bright Petroleum was not accepted by the AO as he noted that the statement of affairs of the appellant and the business balance sheet of Bright Petroleum clearly show that the loan has been diverted to Bright Construction Corporation, the partnership firm of the appellant. The appellant in his submission during appellate proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for the furtherance of the business interest of the assessee' remains unsubstantiated. Therefore, following the ratio of the decision of the Honourable SC (supra), the 'claim of the appellant of the interest paid to the bank as a deduction cannot be allowed. 3. Aggrieved by the order of Ld. CIT(A), the assessee is in appeal before us. The Ld. AR submitted that authorities below have wrongly inferred that the loan amount was diverted to M/s. Bright Construction Corporation merely on the balance sheet of the proprietorship of the assessee. It has been submitted by Ld. AR that such conclusion has been derived without verifying the documents. The assessee has also submitted that the Ld. CIT(A) did not give sufficient oppor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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