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TMI Blog2023 (12) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... hus, find merit in the written submission that the CPC has not considered or unable to consider the allowability of interest income earned and interest incurred due to mechanical working. As also find merit in the written submission that no addition on 26AS alone can be a basis for making addition without verification of fact as has been held by various Benches of the Tribunals, therefore, the addition/adjustment made by AO and confirmed by ld. CIT(A) is deleted. In the result grounds of appeal raised by the assessee are allowed. - SHRI PAWAN SINGH, JUDICIAL MEMBER For the Appellant : None For the Respondent : Shri Vinod Kumar, Sr. DR Order under Section 254(1) of Income Tax Act PER: PAWAN SINGH, JUDICIAL MEMBE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition/adjustment of Rs. 4,12,541/- on the basis of entries found in Form No. 26AS and enhanced the income accordingly by making addition under the head income from other sources . 3. Aggrieved by the additions in the assessment order, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee filed her detailed written submissions. Submissions of assessee is recorded on page No. 3 to 5 of order of ld. CIT(A). The assessee in its submission, submitted that the assessee received interest income of Rs. 8,24,766/- from three parties, out of which one party deducted TDS of Rs. 4,25,114/-. The assessee has paid interest of Rs. 12,36,024/- to various parties and remaining difference amount of Rs. 4,11,258/- was de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TA No. 4/Kol/2020. On the basis of such submission, the assessee prayed that no addition is warranted and addition deserve to be deleted. 4. The ld. CIT(A) after considering the submission of assessee recorded that in the impugned assessment year, the assessee received gross interest income of Rs. 8,24,766/- from three parties, out of which one party made TDS on interest amount of Rs. 4,25,116/-. The assessee incurred interest expenses of Rs. 12,36,024/-. The assessee claimed net interest difference of Rs. 4,11,258/- which was set of against business income while computing the total income. The ld. CIT(A) after recording the aforesaid facts, confirmed the adjustment/addition on various counts firstly, the assessee has not given reason wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior departmental representative (ld. Sr. DR) for the revenue and the material available on record. The ld. Sr. DR for the revenue supported the order of ld. CIT(A). 6. In the written submission, the assessee has submitted that the assessee is a regular income tax assessee and furnished complete books of assessee in due course. During the year under consideration, the assessee earned income from house property, share of partnership firm and income from other sources. The assessee received interest of Rs. 8,24,766/- and paid interest of Rs. 12,36,024/-. The net (difference) of interest expenditure amount of Rs. 4,11,258/- was claimed from business income being related to business. Interest income received from bank of Rs. 61,869/- was show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y unjustified in making/confirming adjustment on irrelevant reasons. All the reasons/basis of ld. CIT(A) is reiterated in her submission. The ld. CIT(A) has not applied his mind and has gone in a deal instead of making correction in the order. To support her submission, no addition can be made on the basis of entries found in Form No. 26AS, the assessee relied upon the following case laws: (1) Devendra Nath Dewedi Vs Department of Income Tax in ITA No. 253/Agr/2013, (2) P.K. Rajasekar Vs ITO ITA No. 121/Chn/2016. (3) Sree Sankeswara Foundations and Investments Vs ACIT ITA No. 3288/Shn/2019 (4) ITO Vs M/s Star Consortium ITA No. 4/Kol/2020 (5) Ravindra Pratp Thareja Vs ITO ITA No. 137/Jbl/2014 dated 31/03/2015 7. I have con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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