9911796707
TMI Blog2024 (5) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal of the assessee before ld CIT (A) are different then grounds of appeal reproduced by the ld CIT (A)in body of appellate order is different Reading of each of the grounds of appeal raised by the ld AO, we are of the view that those are emphatic, clear and forthright. All the grounds of appeal are appropriate and are submitting in guarded words to set aside the appellate order passed by National Faceless Appellate Authority in most casual manner. Thus, we are constrained to state that this is the perfect case of 'cut paste' that too without application of mind. Without mincing many words, we find that order of the ld CIT (A) is passed without application of mind, devoid of any merit, unsustainable and perverse. Thus, for the reasons stated above we allow all the grounds of appeal, direct the ld CIT (A) to look in to the facts and pass the order on the merits of the case, after giving proper opportunity of hearing to the assessee/appellant. Appeal of AO allowed. - Shri Prashant Maharishi, AM And Shri Sunil Kumar Singh, AR For the Assessee : None For the Revenue : Smt. Mahita Nair, DR ORDER PER PRASHANT MAHARISHI, AM: 01. ITA No. 3688/Mum/2023 is filed by the Asst. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are reflected as credit entries in its bank statements. The assessee was requested to furnish the evidence in support of genuineness of loan and therefore, the assessee was asked to furnish the details such as confirmation of bank statement of the lender and income tax return, etc. On 14th December 2017, he was also asked to produce the parties from whom the assessee has obtained this unsecured loans. The assessee failed to prove the genuineness of the loan, however, sent email on 22nd December, 2017, showing the narration of the entries in the bank statement, on the basis of such narration entries provided , name of the parties mentioned, the learned Assessing Officer issued notice under Section 133(6) of the Act to some of the parties as assessee failed to submit necessary details. The assessee was further asked to show cause why the addition under Section 68 of the Act should not be made. The assessee submitted his reply on 28th December 2017, wherein it is contested that some of the loan amounts credited in the books of account of the assessee has been repaid subsequently and further, the entire arrangement of obtaining loan to make advances to one Mr. Jagdish Behlani for vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in past interest income stands assessed under the head Income from Business on net basis v. Because Ld. AO erred in law and on facts in applying the provisions of Section 44AB of the Income Tax Act vi. Because, Ld. AO erred in law and on facts in applying in provisions of section 40(a)(ia) for making disallowance of interest expense to the tune of Rs. 85,49,579/- for non-deduction of TDS vii. Because, Ld. AO erred in law and on facts in not appreciating the fact that the provisions of section 194A are not applicable to the Assessee viii. Because, Ld. AO erred in law and on facts in disallowing interest expense amounting to Rs. 74,07,353/- on the ground that assessee has failed to establish claim of interest expenditure ix. Because Ld. AO erred in law and on facts in disallowing interest expense amounting to Rs. 85,49,579/- even though the fact that the recipients has already shown in their return of income and therefore there is no loss of revenue to the Department x. Because, Ld. AO erred in law and on facts in applying different method of accounting for assessing income and different method of accounting for allowing expenditure xi. Because, Ld. AO erred in law and on facts in in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the real income of the Appellant xi. Because, the Ld. AO erred in law and on fact s in not giving benefit for advance given in con sequence to unsecured loan which have become bad and unrecoverable xii. Because the Learned AO erred in initiating penalty proceedings u/s 271(1)(c) of The Income Tax Act, 1961. xiii. Because Ld. AO erred in levying interest u/s 234B and 234C and the same ought to be deleted 012. The ld CIT (A) has decided altogether different grounds of appeal which were not there in the appeal memo in Form no 35 before him, but has taken grounds of appeal which are not at all issues in appeal and allowed the appeal of the assessee as under :- 3. BRIEF FACTS: The assessee E filed his return of income on 26/04/2015 for the Assessment Year 2014-2015 declaring total income of Rs. 2,77,340/- The case was selected for scrutiny under CASS for limited scrutiny. The assessee is doing Business of Weighing Bridge Activities under the name and style of Star computerised weigh bridge and Chirag enterprise from Vashi, Navi Mumbai. In the present case assessee is liable for tax audit under section 44AB under Income Tax Act, 1961 which the assessee failed to do so. The Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2016 , which the Appellant wish to place reliance during appellate proceedings. The Appellant craved before Ld. AO that he is not engaged in the business of money lending and therefore neither the provisions of section 44AB nor provisions of section 40(a)(ia) are applicable in the Appellant case. However, Ld. AO assessed total income of the Appellant to Rs. 88,26,923/- as against 2,77,340/- returned by the Appellant by disallowing interest expense of Rs. 85,49,579/-. Appellant wish to place reliance on documents as mentioned in para 8 above and also any other document(s) during the course of appellate proceedings. The Ld AO also made disallowance of interest expenditure to the tune of 74,07,353/- on the premise that the appellant failed to submit the document in relation to the interest expense even in situation where provisions of section 40(a)(ia) are not held applicable in the facts of the case. In this regard the appellant duly informed the Ld AO that the Appellants father was in ICU during the fag and completion of assessment proceedings. And therefore requested for the reasonable opportunity to furnish the evidence in relation to genuineness of the interest expenditure to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness activity, but the nature and manner of lending, as well as the frequency, should be taken into account. The assessing officer had failed to bring any factors as the mentioned by the hon ble judicial forums as mentioned above. Neither any tangible evidence nor any cogent reasons had been brought out. Hence in view of the above I am constrained to allow the appeal. 6. As a result, appeal is allowed. 013. In this case :- a) Reference of assessment order in caption of the order of ld CIT (A) is correct but the reference of the assessment order in the body of the appellate order is different. b) Facts stated in assessment order are not at all facts mentioned by the ld CIT (A). Both are strangely different. c) Statement of facts reproduced by the ld CIT (A) in appellate order is not the statement of facts submitted before us by the ld. AO. d) Grounds of appeal of the assessee before ld CIT (A) are different then grounds of appeal reproduced by the ld CIT (A)in body of appellate order is different 014. Reading of each of the grounds of appeal raised by the ld AO, we are of the view that those are emphatic, clear and forthright. All the grounds of appeal are appropriate and are submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
