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2021 (12) TMI 984 - AT - Income TaxRectification of mistake u/s 154 - deduction of interest expenses on loan - CIT (A) in his order under section 250 has disallowed the interest expenses on the reasoning that the assessee failed to produce any documentary evidence suggesting that the assessee has taken loan for the construction of the cinema hall building - HELD THAT:- Since the learned CIT (A) himself has admitted that the building for the cinema was constructed out of the loan which was also repaid by the assessee, then to our understanding, the learned CIT (A) cannot disallow the interest expenses by holding that that there was no document concerning the loan furnished by the assessee. In fact, we are of the view that the learned CIT (A) has given contradictory finding in his order dated 19th March 2019 under section 250 of the Act, which amounts to a mistake apparent from record and the same is liable to be corrected under the provisions of section 154 of the Act. We also note that the assessee before the learned CIT (A) in the proceedings under section 154 of the Act has submitted that, as evident from the statement of facts filed along with rectification application, the loan was taken by the assessee for the purpose of purchasing the equipment, plant, furniture and construction of the cinema building. But the learned CIT (A) in his order under section 154 of the Act without rejecting the contention of the assessee has reached to the conclusion that there is no mistake apparent in the order passed under section 250 of the Act dated 18-03-2019. Thus the order of the learned CIT (A) seems to be a non-speaking order. CIT (A) was under the obligation to reject the contentions of the assessee with reasoning. But he has not done so. Accordingly, in the interest of justice and fair play, we are setting aside the issue to the file of the CIT (A) for fresh adjudication as per the provisions of law after considering the documents of the assessee and after providing reasonable opportunity of being heard to the assessee. Hence, the ground of appeal of the assessee is allowed for the statistical purposes. Appeal of the assessee is allowed for statistical purposes.
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