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2024 (3) TMI 1156 - AT - Income TaxLate remittance of PF and ESI - HELD THAT:- We find the Hon'ble Supreme Court in the case of Checkmate Services (P) Ltd [2022 (10) TMI 617 - SUPREME COURT] has decided the issue in favour of the Revenue and therefore, respectfully following the decision of the Hon'ble Supreme Court, we allow the grounds raised by the Revenue. Loans advanced to sister concerns - CIT (A) reducing the rate of interest from 16% to 8% on the loans advanced by the assessee to the sister concerns - HELD THAT:- The findings given by the CIT (A) cannot be faulted with CIT(A) as he had examined the availability of funds and thereafter had restricted the interest at 8% correctly. Disallowance of expenses - assessee has not filed the requisite bills/vouchers/documents substantiating the increase in expenditure which is in the range of more than 39% of the earlier expenditure - HELD THAT:- AO is required to be disbelieved as the assessee had filed a letter dated 26.3.2015 before the AO which was filled before the passing of the order, where in the assessee had explained the increase in the expenditure . The situation continues to be the same even before the CIT (A). CIT (A) mentioned that the “ Manufacturing, administrative and selling and distribution expenditures along with ledger extracts.” were produced before the revenue authority. The above said, categorical finding of the CIT (A) recorded in the order have gone unrebutted. Undoubtedly, there is no ground raised by the Revenue challenging the order of the learned CIT (A) on the ground of the no adherence to principles of natural justice mentioned in Rule 46A of I.T. Rules. In the absence of any ground-raising violation of principles of natural justice or accepting the evidence at the back of the assessee, the finding recorded by the CIT (A) that the assessee has produced bills/vouchers explaining the increase in expenditure before the AO and before CIT (A) is required to be accepted. Once the bills have been produced by the assessee before the Revenue authorities and the bills have been examined by the CIT (A) and thereafter only the disallowance made by the AO has been deleted. We do not find any reason to interfere with the findings given by the CIT (A) and accordingly, the disallowance deleted by the learned CIT (A) is sustained.
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