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TMI Blog2022 (7) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... to file additional evidence before the Ld. CIT(A)/explaining its claim. After going through the aforesaid facts we are of the opinion that the assessee did not get proper opportunity before the AO. Since we have found in the present case that no reasonable opportunity the assessee got before the AO, we relying on the aforesaid decision of in the case of Tin Box Company ( 2001 (2) TMI 13 - SUPREME COURT] set aside the impugned order of the Ld. CIT(A) and remand the issue back to the file of the AO and direct the AO to frame the assessment de--novo on the same after hearing the assessee in accordance to law. Appeal of the assessee is allowed for statistical purposes. - I.T.A. No.09/Mum/2022 - - - Dated:- 9-5-2022 - SHRI ABY T. VARK ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing the assessment order also has not given proper opportunity to the assessee and disallowed interest of Rs.3,11,21,939/-- u/s 36(1)(iii) of the Income Tax Act, 1961 (hereinafter the Act ) on the premise that the loans are for capital purposes. According to the Ld. AR, the AO did not appreciate that the assessee had total interest free fund which exceeded the amount of loan granted and the disallowance made by the AO u/s 36(1)(iii) of the Act was not warranted. According to the Ld. AR even the total finance charges has not been correctly taken by the AO while computing the disallowance so according to the Ld. AR, the assessee didn t get proper opportunity before the AO, therefore relying on the decision of the Hon ble Supreme Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;s submission that the ITO had not given to the assessee proper opportunity of being heard. That the assessee could have placed evidence before the first appellate authority or before the Tribunal is really of no consequence for it is the assessment order that counts. That order must be made after the assessee has been given a reasonable opportunity of setting out his case. We, therefore, do not agree with the Tribunal and the High Court that it was not necessary to set aside the order of assessment and remand the matter to the assessing authority for fresh assessment after giving to the assessee a proper opportunity of being heard. 2. Two questions were placed before the High Court, of which the second question is not presse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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