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TMI Blog2024 (6) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... able and no disallowance is called for in the present case. The common issue raised in both the years are allowed. Addition u/s 41(1) - AO made this addition based on information that certain companies claimed irrecoverable amounts from the appellant - HELD THAT:- Considering the prayer of the ld. Counsel for the assessee for admission of additional evidence under Rule 29 of the Income tax Rules and also considering the facts which prima facie suggests that there was no liability in the books of accounts in the name of the two concerns, namely, M/s. Premco Rail Engineers Ltd. and Ripley Company Limited, we are inclined to restore the issue to the file of the jurisdictional Assessing Officer for a fresh adjudication in light of the submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hi has held it to be applicable prospectively, namely w.e.f. AY 2022-23, which subsequent to the subject AY 2018-19. b) This disallowance is to be restricted to Rs. NIL as per ratio held in the case of PCIT v State Bank of Patiala [2018] 99 Taxmann.com 285 (Haryana) affirmed by the Hon'ble Apex Court reported as [2018] 99 taxmann.com 286 (SC), since the undisputedly the appellant had NIL exempt income. c) This disallowance is made @ 1 % of the average of Opening balance and Closing balance of Investments which is other than what is prescribed in rule 8D((2)(ii), namely @ 1% of the annual average of the monthly averages of the opening and closing balances of the value of investment . 2. The appellant prays the permission to add, modify a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ledger sheets provided by 2 parties for the relevant previous year without verifying whether each of the transaction recorded in the ledger sheets (including opening balances) by these 2 parties leading to a debit balance in the name of the appellant is correct or not; b) This addition is made without providing an opportunity to the appellant to cross examine these 2 parties to validate / negate the genuineness of each of the transaction recorded in these ledger sheets which led a debit balance in the name of the appellant. 3. The appellant prays the permission to add, modify any further grounds and to furnish additional evidences during the course of appellate proceedings. 3. The first common issue involved in both these appeals is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee to reply as to whether it had booked any income in the books of accounts. However, the assessee stated that it had no closing balance of these concerns in its books but the ld. Assessing Officer was not satisfied and he made and addition u/s 41(1) of the Act at Rs. 5,35,626/-. 5. Appeal against this addition before the ld. CIT(A) did not bring an relief to the assessee, even when the ledger accounts were filed, stating that no such balance is appearing and the last transactions which took place with these companies were before many years and the same were squared off. 6. Aggrieved the assessee is now in appeal before this Tribunal. 7. The ld. Counsel for the assessee submitted that they have not dealt with these two companies in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading liability. In other words, liability standing in the books is sine qua non before proceedings to examine the transactions under Section 41(1) of the Act. Considering the prayer of the ld. Counsel for the assessee for admission of additional evidence under Rule 29 of the Income tax Rules and also considering the facts which prima facie suggests that there was no liability in the books of accounts in the name of the two concerns, namely, M/s. Premco Rail Engineers Ltd. and Ripley Company Limited, we are inclined to restore the issue to the file of the jurisdictional Assessing Officer for a fresh adjudication in light of the submissions of the assessee as well as the additional evidence adduced by the assessee. Needless to mention that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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