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2023 (8) TMI 81 - ITAT CHENNAIDisallowance of interest expenses 40A(2)(b) - CIT(A) restricting the rate at 14% as against claimed by assessee at 16% - HELD THAT:- As the assessee’s payment of interest to Shriram Properties Ltd., on unsecured loan @ 16% is quite reasonable in view of the fact that the benchmark prime lending rate by SBI as on 01.04.2017 was at 13.85% and that also for secured loans i.e., the assessee has to mortgage certain assets. This loan taken by assessee of Shriram Properties Ltd., @ 16% is unsecured and this is for regular business commitment and completion of projects. The charging of interest @ 16% is quite reasonable and hence, we reverse the finding of CIT(A) on this issue and allow the appeal of assessee. Maintainability of Appeal against an intimation/processing of return u/s. 143(1) - Counsel stated that the order of CPC processing the return u/s. 143(1) of the Act has merged into the order passed by AO u/s. 143(3) of the Act and hence, it can be challenged at this stage only - HELD THAT:- Appeal against an intimation u/s. 143(1) of the Act is provided and the second limb clearly provides that section 246A(1)(a) of the Act enables an assessee to prefer an appeal before Commissioner (Appeals) against intimation / processing done by CPC u/s 143(1) of the Act, where the assessee objects to making of an adjustment. It means that in the present case before us the assessee has not challenged the intimation/processing of return by CPC, Bangalore passed u/s. 143(1) of the Act dated 01.10.2019 and that has attained finality in the absence of any appeal or other remedy available with the assessee. Once the appeal is provided under the statute and the assessee has not availed of the right to appeal, now he cannot appeal the same while challenging the assessment order u/s. 143(3) of the Act. In term of the above, we confirm the order of CIT(A) on this issue and dismiss the appeal of assessee.
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