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2016 (10) TMI 251 - HC - Income TaxDisallowance of interest - addition u/s 36(1)(iii) - whether transactions are arising out of ‘commercial expediency’ & ‘business exigencies’Held that:- Tribunal upheld the Assessing Officer’s finding that the unsecured loans of ₹ 588.79 lacs were not available to the assessee. It is difficult to understand the basis for this finding as the Tribunal has not considered the assessee’s records which the assessee contends indicate the contrary. The assessee contends that the amounts have been received by him by cheque from persons who are on assessee’s records. Having said that, we must point out that the assessee’s balance-sheet is not very clear in this regard. The amount of about ₹ 5.38 crores is shown as against the name of M/s Garg Infrastructure Private Limited under the heading “Other Liabilities”. It is for the assessee to explain that it really is nothing but an interest free loan. If it is an interest free loan, it would make all the difference to the assessee’s case. It is not very clear whether this was so stated to the CIT (Appeals) and to the Tribunal or not. In the facts and circumstance of this case, the ends of justice, however, would be met by affording the appellant an opportunity of having the matter re-heard before the Tribunal.The matter is remanded to the Tribunal for a fresh decision after affording the appellant an opportunity of being heard.
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