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2016 (1) TMI 1092 - AT - Income TaxDisallowance u/s 68 - Held that:- Certain investigations have been done by the A.O. Evidences have been gathered by the A.O. in support of the addition made by him. The deletion by the Ld.CIT(A) of this addition, on the ground that these evidences were not confronted to the assessee, was not proper. When the inspection report can be put to the assessee by the Ld.CIT(A), other evidences should have also been put to the assessee by the Ld.CIT(A). The assessee contends that all the information and material obtained by the A.O. has to be put to him before coming to a conclusion. He further contends that the assessee has furnished whatever material it could, and as considerable time has elapsed no further burden should be put on the assessee to furnish any further evidences. We find force in these submissions of the assessee. The A.O. in our view should not put further burden on the assessee. This case should be set aside to the file of the AO for fresh adjudication. We issue the following directions to be followed by the A.O. (a) The assessee should be confronted with the information and material based on which the AO made this addition and there after pass a speaking order after considering the contentions of the assessee. (b) Similarly, in case the A.O. chooses to rely on the statement of any person, copies of the same should be furnished to the assessee and opportunity to cross examine those witnesses of Revenue should be provided to the assessee. Disallowance u/s 14A - Held that:- We agree with the finding of fact given by the Ld.CIT(A) that no part of interest expenditure can be disallowed u/s 14A of the Act. As regards administrative expenses u/s 14A, we are of the opinion that disallowance of ₹ 1 lakh on adhoc basis would meet the interest of justice.
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