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2020 (12) TMI 1155 - ITAT BANGALOREAdditional ground be admitted in the interest of advancement of natural justice - HELD THAT:- There is no necessity of investigation of any fresh facts on this issue and there is good and sufficient reason for not raising this ground in earlier occasion. Accordingly, by placing reliance on the judgment of Supreme Court in the case of NTPC [1996 (12) TMI 7 - SUPREME COURT] we admit the additional ground for adjudication. Disallowance of travelling expenditure - Major portion of payments relating to Director’s credit card payment - According to the AO, there was personal element involved in this expenditure incurred by the Director - HELD THAT:- The assessee has not substantiated the travel expenditure as it is wholly and exclusively made out for business. There is every chance of personal element attached to this expenditure. It is the duty of the assessee that the expenditure is wholly and exclusively incurred for the purpose of business. Though the AO disallowed expenditure on adhoc basis, the CIT(A) confirmed the same without passing speaking order. In our opinion, it is appropriate to remit the issue back to the file of AO to pin point the exact expenditure which is personal in nature and where the Directors are benefitted by such expenditure. Accordingly, this issue is remitted to the AO for a fresh consideration. Disallowance of business development expenditure AND Club expenses - HELD THAT:- As discussed in the earlier para, the assessee has to establish that this expenditure was incurred only exclusively for the purpose of business by placing necessary evidence so as to entertain the foreign buyers. Accordingly, this issue is remitted to the file of AO for fresh consideration. Suppressed income of assessee - Sale receipts from sale of scrap silk yarn - difference between the value determined by AO and the value declared by assessee - HELD THAT:- There are various scraps like sale of acrylic yarn, sale of noil yarn, sale of silk yarn, sale of sleever, sale of spun silk yarn, sale of viscose yarn. Each one’s value is different and the AO uniformly taken the value of each item per kg. at ₹ 1200/- per kg. which is not proper. Accordingly, we direct the AO to consider each type of item separately to determine the value of it and then there is difference between value adopted by the assessee and to the value computed by the AO, he can sustain the addition on this count. With this observation, we remit this issue to the file of AO for fresh consideration. Addition of interest income from other sources - contention here is that there is a brought forward loss and depreciation in the return of income and this interest income should be set off out of the brought forward loss and depreciation and the net result will be considered to determine the income of the assessee - HELD THAT:- The order of the CIT(A) on this issue is very cryptic. She has not dealt the issue in proper prospective. The AO is not correct in not considering the set off of brought forward loss and depreciation while computing the income of the assessee. Hence, we remit this issue to the file of CIT(A) to pass a speaking order on this issue and decide accordingly.
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