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2022 (7) TMI 473 - ITAT MUMBAIDisallowance u/s 36(1)(iii) - loans are for capital purposes - Denial of natural justice - Admission of additional evidence - As per AR AO did not appreciate that the assessee had total interest free fund which exceeded the amount of loan granted and the disallowance made by the AO u/s 36(1)(iii) - HELD THAT:- We note that the AO has disallowed u/s 36(1)(iii) of the Act which according to the assessee was made without appreciating the relevant facts which could not be provided to the AO, since assessee didn’t get proper opportunity before AO. Thereafter the assessee had to file additional evidence before the Ld. CIT(A)/explaining its claim. After going through the aforesaid facts we are of the opinion that the assessee did not get proper opportunity before the AO. Since we have found in the present case that no reasonable opportunity the assessee got before the AO, we relying on the aforesaid decision of in the case of Tin Box Company (2001 (2) TMI 13 - SUPREME COURT] set aside the impugned order of the Ld. CIT(A) and remand the issue back to the file of the AO and direct the AO to frame the assessment de--novo on the same after hearing the assessee in accordance to law. Appeal of the assessee is allowed for statistical purposes.
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