9911796707
TMI Blog2023 (9) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, and there was no accountant with the assessee for quite a long time. By the time a new accountant was appointed, the delay had already occurred in filing the appeal against the impugned order. The assessee further submitted that the delay in filing the present appeal is unintentional. 3. On the other hand, the learned Departmental Representative ("learned DR") vehemently opposed the condonation of delay in filing the appeal. 4. Having considered the submissions of both sides and perused the material available on record, we find that the reasons stated by the assessee for seeking condonation of delay fall within the parameters for grant of condonation laid down by the Hon"ble Supreme Court in the case of Collector Land Acquisition, Anantnag Vs. MST Katiji and others: 1987 SCR (2) 387. It is well established that rules of procedure are handmaid of justice. When substantial justice and technical considerations are pitted against each other, the cause of substantial justice deserves to be preferred. In the present case, nothing has been brought on record to show that the assessee shall stand to benefit by late filing of the present appeal. In view of the above and having perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 04/12/2019, passed under section 143(3) of the Act, the Assessing Officer ("AO") completed the assessment at the returned income. 8. Subsequently, vide notice dated 25/02/2022, issued under section 263 of the Act, the learned PCIT initiated revisionary proceedings on the basis that the assessee has shown a loss of Rs.15,06,179 under the head "income from other sources", which is arrived by claiming interest expenses of Rs.34,26,183, on unsecured loans against the interest income of Rs.6,25,525, and interest capitalised of Rs.12,94,479. It was alleged that the AO during the assessment proceedings has not verified the claim of expenses under section 57 of the Act and has also not established the nexus between the income earned and expenses claimed. Thus, the claim of interest expenses of Rs.34,23,183, has been allowed under section 57 of the Act without proper verification. To this extent, the learned PCIT alleged that the action of the AO is erroneous insofar as it is prejudicial to the interest of the Revenue. 9. In response to the aforesaid notice, the assessee submitted that the claim of expenses by the assessee was duly verified and thoroughly checked by the AO at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings, which were duly provided by the assessee. Accordingly, after considering the documents and submissions filed by the assessee, the AO concluded the scrutiny assessment accepting the returned income. 12. On the other hand, the learned DR vehemently relied upon the impugned order passed under section 263 of the Act and submitted that the nexus between the interest income and interest expenditure was not established by the assessee while claiming benefit of section 57 of the Act. 13. We have considered the submissions of both sides and perused the material available on record. Vide notice dated 28/08/2018, issued under section 143(2) of the Act, forming part of the paper book from pages 29-30, the return filed by the assessee was selected for limited scrutiny for examination of the following issues:- (a) Salary income (b) Deduction against income from other sources 14. During the assessment proceedings, notice dated 23/10/2019, was issued under section 142(1) of the Act, forming part of the paper book from pages 13-15, seeking the following details from the assessee:- (i) Details regarding income from other sources (ii) Details of expenditure claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Type Vch no. Debit Credit 31.03.2017 Cr Mool Singh B. Deora Interest @ 12% P.A. Journal 35 2,16,583.00 Cr Narendra C. Panani Interest @ 12% P.A. Journal 36 13,98,767.00 Cr Prime Civil Infrastructure Pvt. Ltd. Interest @ 12% P.A. Journal 37 4,87,800.00 Cr Neelima R. Madhani Interest @ 12% P.A. Journal 38 13,23,033.00 34,26,183.00 34,26,183 Dr Closing Balance 34,26,183.00 34,26,183 18. Apart from the aforesaid details, it is evident from the record that neither any other information/clarification was sought by the AO nor any other explanation was furnished by the assessee. As per the assessee, after considering the aforesaid details the return of income filed by the assessee was accepted vide order dated 04/12/2019, passed under section 143(3) of the Act. However, as per the learned PCIT, the AO has not verified the nexus between the interest expenses claimed under section 57 of the Act with the interest income. Before proceeding further, it is relevant to note the provisions of section 57(iii) of the Act, which reads as under:- "57. The income charg ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
