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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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