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2017 (9) TMI 1398 - ITAT DELHIAssessment made u/s. 143(3) - AO disallowing the loss under the head "Other sources" and addition for low withdrawals for household expenses - Section 14A applicability - denial of natural justice - Held that:- CIT(A) has not given proper chance to the assessee’s counsel to substantiate its case and wrongly affirmed the assessment made u/s. 143(3) by the AO disallowing the loss under the head "Other sources" and addition for low withdrawals for household expenses failing to appreciate that when Section 14A not applicable to the factual matrix of the present case. The disallowance of interest expenses on account of the copies of bank statements of two accounts with Bank of Baroda, sanction letter dated 03.09.2009 of one loan of ₹ 1.9 crores were found to be illegible and because of this reason alone, the disallowance was made. The above finding is against the principles of equity, justice and good conscience and instead another opportunity should have been provided to the assessee to file copies of the evidence on record as the copies of bank statements and loan sanction letter were illegible because of poor print quality of the printer from which the clerk took the printouts. CIT(A) has failed to appreciate the evidences regarding the use of the loan taken from bank and has wrongly disallowed the amount based on assumptions and surmises. Also find cogency in the submissions of assessee that the estimation of living expenses of ₹ 20,000/- per month in F.Y. 2011-12 to be regarded as too low for a family of three cannot be regarded as based on any principle of law or common sense as such amount of money is enough for a family of three to live a simple and decent lifestyle when there are no expenses for rent education and such other like expenses. As the assessee is in a possession of all the documents/ evidences to substantiate its case before the Ld. CIT(A), which has not been considered by the Ld. CIT(A) while deciding the appeal, which is now deserve to be appreciated. - Assessee’s appeal is allowed for statistical purposes.
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