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2018 (5) TMI 2061 - ITAT CHENNAIInterest income under the head other sources and claimed the interest paid under section 57 - Non-representation before the Ld.CIT(A) by assessee - HELD THAT:- The assessee have not represented its case before the Ld.CIT(A). The reason for non-representation before the Ld.CIT(A) has been clarified by the Ld.AR stating that the Managing Director of the assessees company was in substantial problems which had resulted in him not being able to give adequate attention. Considering the fact that all the details in respect of the issue have not been considered by the AO and the fact that the assessee have not represented before the Ld.CIT(A) by restoring the issue to the file of the Ld.CIT(A), it would not serve any purpose in so far as any evidence produced before the Ld.CIT(A) on this issue would have to be sent to the AO for his Remand Report - we are of the view that the issue in this appeal is liable to be restored to the file of the AO for re-adjudication. AO is to verify whether the loan has actually been taken from the holding company and whether the interest has been paid to such holding company. If the loan has been taken by the assessees from any source and the assessees have paid interest on such loans taken clearly, if the assessees have used such loans for the purpose of giving further loans then the interest paid is liable to be allowed and it is only the net of the interest which is liable to be assessed as the income of the assessees. Appeals filed by the assessee are partly allowed for statistical purposes.
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