Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 789 - AT - Income TaxDisallowance u/s.36(i)(iii) - Addition of interest expenses as well as other expenses inspite of the admission of the fact that certain investments made out of borrowed funds - AO enquired from the assessee as to why disallowance should not be done under section 14A and without prejudice to the above, justify the interest payment u/s 36(1)(iii) - AO rejected the assessee’s plea that share application money does not quantify for disallowance u/s 14A. He also rejected assessee’s submission that investment made as strategic investment in subsidiary can help the case of the assessee. He also rejected the plea that no dividend income has been earned so disallowance u/s 14A cannot be done. HELD THAT:- We note that assessee has made elaborate submissions and relied upon several case laws before ld. CIT (A). Ld. CIT(A) did not deal with them and has passed rather laconic order. It is settled law that even administrative order has to be considered with rule of natural justice. The factual details also need verification. Hence, in the interest of justice, we remit the issue to the file of ld. CIT(A). Ld. CIT (A) is directed to pass a detailed order considering all facts of assessee’s argument and case laws referred. Needless to add, assessee should be granted adequate opportunity of being heard - Appeal of the assessee is allowed for statistical purposes.
|