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2020 (10) TMI 423 - HC - Income TaxInterest expense on moneys borrowed disallowed u/s 57(iii) - appeal filed before the Tribunal, the assessee contended that the CIT did not consider the statement of confirmations given evidencing that no new loan was taken during the year under consideration - HELD THAT:- Assessee specifically stated that the loans were availed through banking channels and the interest amounts were paid to the lenders, who have disclosed the same in their respective return of income and tax had been remitted by them on the interest income. Had AO directed the assessee to produce those lenders to appear for an enquiry by issuing notice, probably correct factual decision would have been ascertained. This aspect had not been dealt with in the impugned order passed by the Tribunal. As mentioned earlier, the Tribunal proceeded on a totally different footing, which neither appears to be the case of the assessee nor that of the Revenue. The assessee cannot be worse off before the Tribunal in his own appeal. Considering the facts and circumstances of the case and taking note of the nature of business activities done by the assessee, we deem it appropriate to set aside the orders passed by the AO, the CIT(A) and the Tribunal and remand the matter to the AO for a fresh consideration. Above tax case appeal is allowed, the orders passed by the AO, the CIT(A) and the Tribunal are set aside and the matter is remanded to the Assessing Officer for a fresh consideration.
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