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TMI Blog2023 (10) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... egistry has pointed out that there is a delay of 59 (fifty nine days) days in filing the present appeal before the Tribunal. The revenue has filed a petition for condonation stating that the impugned order passed by the ld. CIT(A) dt. 18/09/2020 was received by the Department on 14/10/2020. It is noted that the period of delay falls during the time of Pandemic of Covid-19 which has been excluded by the Hon'ble Supreme Court in the case of suo moto Writ Petition (C) No. 3 of 2020 dated 10.01.2022 by which the period from 15.03.2020 to 28.02.2022 has been directed to be excluded for the purpose of limitation. Accordingly, we condone the delay and proceed to admit the appeal for hearing. 3. The revenue raised the following grounds of appeal:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er cent of the aggregate amounts of expenditure incurred by the assessee firm on account of telephone charge, travelling and Motor car expenses, whichever not maintaining in the books of accounts bills and vouchers produced the course of assessment proceedings. Such ad-hoc disallowances has been made only on an estimated basis which does not find support from the provisions of the act. 5. The appellant craves leave to add, delete and/or modify any of the grounds of appeal before or at the time of instant appeal proceedings." 4. Brief facts of the case is that the assessee is a partnership firm engaged in the business of manufacturing and trading of shellac products. Income of Rs. 1,25,93,997/- disclosed in the return for Assessment Yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- and Rs. 10,557/- during the A.Y. 2013-14 but loan received from such parties are Rs. 30,00,000/- and Rs. 40,00,000/-. Therefore, it is evident that such parties have no credit worthiness to give such huge amount of loan. (d) In the reply received from two parties, no source of fund is explained, therefore such claim cannot be accepted. Under these facts and circumstances, it is clear that the entire unsecured loan of Rs. 4,99,50,000/- are bogus and existing only on paper and it is done to bring the unaccounted black money into the business. Under these facts and circumstances, such bogus unsecured loan of Rs. 4,99,50,000/- and interest claimed of 52,14,990/- on such bogus loan is disallowed. Therefore Rs. 5,51,64,990/- (4,99.50.000 + ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Dataware Private Ltd. (ITAT No. 263 of 2011 : G.A. No. 2856 of 2011 (Calcutta High Court) * Ashish Sumatibhai Shah vs. The DCIT in ITA No. 2994/Ahd/2017 (Ahmedabad ITAT) * CIT vs. Ayachi Chandrashekhar Narsangji [2014] 42 taxmann.com 251 (Gujarat) * ITO vs. Shri Subrata Das in ITA No. 1386/Kol/2016 (Kolkata ITAT) * Shri Lalchand P. Dhariwal vs. ITO in ITA No. 2623/AHD/2016 (Ahmedabad ITAT) 8. We have heard rival contentions and perused the material placed before us. 9. Apropos Ground Nos. 1 & 2, raised by the revenue against the addition made under section 68 of the Act and disallowance of interest expenditure paid thereon, we notice that the assessee has placed complete details including PAN Nos., bank account statements ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce is called for in the finding of the ld. CIT(A). Thus, Ground Nos. 1 & 2 of the revenue are dismissed. 10. Ground No. 3, is against the disallowance made under section 14A of the Act. We notice that the dividend income on during the year is Rs. 29,363/-. Disallowance has been made under section 14A of the Act at Rs. 25,967/-. However, the fact remains undisputed that the only investment made by the assessee firm in mutual funds is at Rs. 5,00,000/-. During the appellate proceedings before the ld. CIT(A), prayer of the assessee was to direct the Assessing Officer to verify the claim of the appellant in view of the decision of the Hon'ble Calcutta High Court in the case of CIT vs. M/s. REI Agro Ltd., judgment dt. 23/12/2013 in ITAT No. 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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