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TMI Blog2022 (4) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... e order dated 10.08.2020 without appreciating the facts that during the course of appellate proceedings, the AR had submitted additional evidences under Rule 46A.Subsequently such evidences were remanded back to the file of the AO for verification. However, without the receipt of remand report, the Ld CIT(A) had chosen to completely ignore the evidences produce in order to substantiate the appellant's case. This is nothing but gross contravention of the principles of natural justice. 2. The Ld. CIT (A) further erred in confirming the additions made by the Ld. AO amounting to Rs. 91,27,000/-on the alleged ground that the appellant had taken bogus loans without appreciating the fact that the A.R. of the appellant had submitted all the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T (A) erred in inferring that the loan taken under "Personal Name" does not mean loan taken for "Personal Use". 6. The learned CIT (A) further erred in confirming the interest imposed u/s. 234B and 234C by the Ld. AO. The Appellant craves leave to add to and/or amend and/or delete and/or modify and/or alter the aforesaid grounds of appeal as and when the occasion demands." 2. Fact in brief is that return of income declaring total income of Rs. 7,51,155/- was filed on 29.09.2012. The case was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 06.08.2013. The assessment u/s 143(3) of the Act was finalized on 30.03.2015 determining total income at Rs. 1,07,99,130/-. The remaining fact of the case pertaining to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red document i.e copies of ITR and confirmation loan etc. were filed before the ld. CIT(A) as additional evidences. However, the ld. CIT(A) has dismissed the appeal of the assessee stating that assessee failed to establish the genuineness of unsecured loan during the assessment as well as appellate proceedings. 4. During the course of appellate proceedings before us the ld. Counsel has filed paper book comprising copies of document and information furnished before the A.O and ld. CIT(A) during the course of assessment and appellate proceedings. The ld. Counsel has referred page No. 40-70 of the paper book pertaining to additional evidences filed before the ld. CIT(A) for proving creditworthiness, identity and genuineness of loan creditors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue to the learned first appellate authority we would be multiplying the litigation, because the ld. CIT(A) would call for a remand report from the assessing officer and proceedings to be commenced on two stages, in order to avoid that situation we would deem it proper to set aside this issue to the file of the A.O for deciding afresh after taking into consideration the additional evidences filed during the course of appellate proceedings before the ld. CIT(A). It is needless to say that observation made by us will not ensure or impair the case of A.O and will not cause any prejudice to the defense explanation of the assessee. Accordingly, this ground of appeal of the assessee is allowed for statistical purposes. 3rd Ground: Additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim. After taking into consideration the aforesaid facts and material on record we observe that ld. CIT(A) has not disproved the supporting evidences furnished by the assessee in support of his claim that aforesaid amount of Rs. 4,50,000/- was withdrawn from overdraft bank account maintained with Modal Cooperative Bank ltd. before depositing the same in the bank account maintained with the Federal Bank ltd. Therefore, this ground of appeal of the assessee is allowed. 4th Ground: Disallowance of interest of Rs. 2,69,750/-: 9. During the course of assessment the A.O noticed that assessee has claimed interest expenses to the amount of Rs. 14,45,000/-. On the perusal of the detail filed the A.O observed that assessee obtained loan from 4 par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whereas to the order parties the rate of interest was almost ½ of the said rate of interest. The ld. CIT(A) has dismissed the appeal of the assessee stating that no documentary evidences has been furnished by the assessee to justify the payment of interest at higher rate of 24%. Even, during the course of appellate proceedings before us the assessee has simply filed copy of acknowledgment of return of income filed by M/s Kiran A Lund without filing any documentary evidence to substantiate the genuineness of paying interest @ 24%, therefore, we don't find any infirmity in the decision of the ld. CIT(A). Accordingly, this ground of appeal of the assessee stand dismissed. 5th Ground: Disallowance of interest of personal loan: 12. Dur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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