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2021 (10) TMI 275 - AT - Income TaxAddition of opening cash balance - AO treated the opening balance for the A.Y. 2012-13 as unexplained and added the same to the total income of the assessee - case of the assessee that it does not maintain the balance sheet or Profit and Loss Account but the cash statement has been placed on record - HELD THAT:- The transactions were routed through banking channel which has not seen to have been verified by the Revenue. Thus, upon considering the entire aspect of the matter we find it fit and proper to remit the issue to the file of the Ld. AO to verify the genuineness of the transaction i.e. the source of the opening balance of the assessment year in consideration and to pass orders in accordance with law upon granting an opportunity of being heard to the assessee and upon taking into consideration the evidence which the assessee may rely upon at the time hearing of the matter. This ground of appeal is, thus, allowed for statistical purpose. Disallowance of interest expense - assessee has not produced the balance sheet or the statement of accounts or evidence with regard to the activities carried out by him, the interest charged on loan given by the assessee, purpose of loan taken, business activities carried out - HELD THAT:- As case of the assessee is this that the assessee paid interest on borrowed amount and earned interest on the loan given but only the interest earned has been taken into consideration by the Revenue and the interest paid has not been deducted, since the verification on this aspect has not been done by the Revenue under this facts and circumstances of the case we find it fit and proper to remit the issue to the file of the Ld. AO to verify such details - Assessee's appeal disposed of by statistical purposes.
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