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2014 (7) TMI 865 - AT - Income TaxInterest payment – Genuineness of claim not established – Held that:- CIT(A) has mentioned the matter set out in the letter - nowhere in the order of the CIT(A) mentioned that the CIT(A) has made any factual verification of the contents - if the AO has not made necessary examination the CIT(A) is bound to make examination himself – relying upon Kapoorchand Shrimal vs CIT [1981 (8) TMI 2 - SUPREME Court] - it is the duty of the appellate authority to correct the lacunae in the orders of the authorities and if it is required to remit the issue to them – matter remitted back to the AO – Decided against Revenue. Notional interest on advance – Failure to furnish explanation – Held that:- The assessee has made advance to the party and has made purchases - advance made was subsequently adjusted also - CIT(A) right in holding that no notional interest was liable to be charged - it is not the case of the AO that the advance made by the assessee was not trade advance but loan advanced - it is the real income that is taxable and not notional income – Decided against Revenue. Deferred revenue expenses disallowed – Held that:- CIT(A) has deleted the addition and gave a finding that disallowance on account of deferred revenue expenditure was already added back by the assessee in the computation of income - the disallowance made by the AO has resulted in double disallowance, which cannot be sustained – order of the CIT(A) upheld – Decided against Revenue.
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