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2014 (3) TMI 182 - KERALA HIGH COURTExcess drawings effected by the partners - Addition made u/s 68 of the Act - Amount not disclosed in the Return – Deletion made u/s 40A(3) and 40(a)(ia) of the Act – Held that:- The first appellate authority as well as the assessing officer did not have the benefit of checking any of the records which were produced before the Tribunal as a paper book - Some of the documents which were part of the paper book produced before the Tribunal are placed as additional documents by filing an Interlocutory Application. The entire system of accounting maintained by the respondent/assessee is by way of cash -similar accounting system is maintained so far as the sister firms and also the accounts of the partners including Mr.George Jacob - The stand of the respondent/assessee before both the appellate authorities was, the funds coming to the respondent/assessee was belonging to one of the partners, i.e. Shri.George Jacob and the funds reached him through other sister firms, therefore, there is proper explanation so far as ₹ 12.18 Crores - So far as non-payment of interest on excess amounts drawn by the partners of the firm they claim that certain capital amounts were available with the firm in respect of each of the four partners who had drawn excess amount, and as no interest was paid in the previous financial year, they did not charge any interest for the assessment year in question. The Tribunal placing reliance on paper book filed by the respondent/assessee in question which never was the subject matter of consideration before the assessing officer and the first appellate authority - the controversial issues raised before cannot be analyzed with reference to the factual situation - Even otherwise, the Court need not go into the veracity and genuineness of the facts placed on record now - In the absence of the additional documents for consideration before the assessing officer and CIT(Appeals), one cannot conclude that the opinion of the assessing officer and CIT (Appeals) were erroneous - Similarly Tribunal refers to several documents which persuaded reversal of the opinion of the assessing officer and CIT(Appeals) – thus, the matter is remitted back to the AO for fresh consideration – Decided in favour of Revenue.
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