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TMI Blog2022 (2) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... from other sources and estimated the expenditure only. In the Assessment Order, the Assessing Officer has not properly considered the expenditure incurred by the Assessee to earn the interest income and simply estimated the interest expenditure. In our view, it is not correct. Thus we set aside the order passed by the learned Commissioner of Income Tax (Appeals) on this count and remit back the matter back to the Assessing Officer to adjudicate the issue afresh in accordance with law de novo. Disallowance of depreciation - AO has noted that the assessee has claimed depreciation on certain items of additions made to the fixed assets like furniture and fittings and computers - since the assessee was not able to produce any evidence in respect of additions to the fixed assets, the Assessing Officer disallowed the claim of depreciation - CIT(A) confirmed the disallowance on the ground that the assessee has not furnished any evidence even during the course of appellate proceedings - HELD THAT:- Before us also, the assessee has not produced any evidence in respect of the items of additions made to the fixed assets like furniture and fittings and computers. In view of the above, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the order of the Tribunal in I.T.A. No. 2703/Mds/2018 dated 23.10.2019 for the assessment year 2015-16, the Hon ble Jurisdictional High Court set aside the orders of the Tribunal and remitted the matter back to the Tribunal to be heard and decided afresh on the ground that the appeal order for the assessment year 2014-15 has been, by oversight, heard and adjudicated by Single Member Bench, despite the total income of the assessee exceeds ₹.50 lakhs, which was subsequently recalled by the Tribunal in M.P. No. 55/Chny/2018 dated 08.06.2018. Similarly, by following its own order for the assessment year 2014-15 [SMC order], the Tribunal dismissed the appeal for the assessment year 2015-16, thereby, both the matters were remitted back to the Tribunal for fresh hearing and adjudication by the Division Bench of the Tribunal. 3. The first common ground raised in all the appeals relates to confirmation of disallowance of interest income earned by staff advance claimed to be eligible for deduction under section 80P of the Income Tax Act, 1961 [ Act in short]. The ld. Counsel for the assessee has submitted that similar issue on an identical facts and circumstances, the Division Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee stands dismissed for all the assessment years under appeal. 4. The next common ground raised in the appeals of the assessee relates to confirmation of disallowance of interest income earned from FDs and Trusts, which was treated as income from other sources. The ld. Counsel for the assessee has submitted that similar issue was subject matter in appeal before the Tribunal for the assessment years 2012-13 and 2013-14 and the Tribunal has remitted the matter back to the file of the Assessing Officer for de novo adjudication and thus, prayed that similar directions may also be given for the assessment years under appeal. The ld. Counsel further submitted that there is a direct nexus between the loans availed by the assessee and FDs and therefore, the entire expenditure has to be allowed. 4.1 On the other hand, the ld. DR strongly supported the order passed by the ld. CIT(A) as well as Assessing Officer. 4.2 We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In the assessment order, the Assessing Officer has noted that the interest from deposits with trusts and savings accounts has been charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n opportunity of being heard to the assessee. 5. The next ground raised in the appeal of the assessee for the assessment year 2016-17 in I.T.A. No. 559/Chny/2020 relates to confirmation of disallowance of depreciation of ₹.2,98,195/-. In the assessment order, the Assessing Officer has noted that the assessee has claimed depreciation on certain items of additions made to the fixed assets like furniture and fittings and computers. However, since the assessee was not able to produce any evidence in respect of additions to the fixed assets, the Assessing Officer disallowed the claim of depreciation of ₹.2,98,195/- and brought to tax. On appeal, the ld. CIT(A) confirmed the disallowance on the ground that the assessee has not furnished any evidence even during the course of appellate proceedings. 5.1 Before us also, the assessee has not produced any evidence in respect of the items of additions made to the fixed assets like furniture and fittings and computers. In view of the above, the disallowance of depreciation confirmed by the ld. CIT(A) stands sustained. Thus, the ground raised by the assessee is dismissed. 6. The next ground raised in the appeal of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.1 Before us also, the assessee has not produced any documentary evidence in respect of the TDS deduction made towards payment of professional and technical services as well as payment to contractors. In view of the above, the disallowance made under section 40a(ia) of the Act and confirmed by the ld. CIT(A) stands sustained. Thus, the ground raised by the assessee is dismissed. 8. The next ground raised in the appeal of the assessee for the assessment year 2016-17 in I.T.A. No. 559/Chny/2020 relates to confirmation of disallowance of business expenses of ₹.86,430/-. On verification of the financials of the assessee, the Assessing Officer noted from the profit and loss account that a sum of ₹.86,430/- was debited towards land tax. Since such expenditure was found to have been towards other than business activities of the assessee, the same was disallowed and brought to tax. On appeal, the ld. CIT(A) confirmed the disallowance made by the Assessing Officer. 8.1 We have heard the rival contentions. The assessee has claimed business expenditure of ₹.86,430/-. The Assessing Officer noticed that the said sum was debited in the profit and loss account towards l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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