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2017 (3) TMI 1053 - AT - Income TaxAddition on notional basis on account of interest accrued - capital contribution made by the assessee in the partnership firms namely Kamanwala Lakshachandi Todays Developers (KLTD) and Kamanwala Lakshachandi Todays Construction (KLTC) - assessee has offered the same to tax in assessment years 2012-13 & 2013-14 - Held that:- It is a case of double assessment of same income. Such a situation is highly unjustified and not permitted under the provisions of income tax law. Therefore, keeping in view alternative prayer of the assessee, we direct that interest income offered in the subsequent years should be excluded from total income to remove the double addition. The AO is directed to pass requisite rectification order in Assessment Years 2012-13 & 2013-14 so as to give effect to our order. The assessee is also directed to furnish requisite details and documentary evidences to the AO to show that same interest income has already been offered in A.Y. 2012-13 and 2013-14. Thus, these grounds may be treated as allowed in accordance with the aforesaid directions. Under these circumstances, we do not find it necessary to adjudicate the other issues raised by the assessee with regard to these grounds. Disallowance on account of Sundry Debtors written off by the assessee during the year - Held that:- CIT(A) has passed nonspeaking order without giving proper reasoning. We find it appropriate to send this issue back to the file of the AO. The assessee shall submit on record requisite details and evidences to justify its claim. The assessee is required to show that the impugned amount has already been included in its income in earlier years so as to claim the benefit of paid debts u/s 36(1)(vii). The AO shall decide this issue again after considering all the facts and circumstances, as may be brought on record by the assessee. The assessee is also permitted to make any alternative claim as may be permitted under the law. Disallowance of TDS written off during the year - Held that:- Disallowance has been confirmed by the lower authorities without examining facts and figures. It was shown that these amounts were recoverable from the parties on account of TDS deposited by the assessee on behalf of these parties, but the payment in full was inadvertently made to these parties. However extra amounts paid could not be recovered from the said parties. Under these circumstances, these unrecovered amounts are of nature of loss incurred during the normal course of business. Complete details were shown to us by Ld. Counsel in this regard. Nothing wrong has been pointed out by the Ld. DR in this regard. Under these circumstances, we find that disallowance made by the AO was not justified under the law. Disallowance on account of rent paid u/s 40(A)(2)(b) - Held that:- Assessee has been able to discharge its onus as was envisaged under the law, whereas the AO had wrongfully invoked provisions of section 40A(2)(b) and also erred in disallowing the expenditure in full. Thus, since disallowance made by the AO is contrary to law and facts, same is therefore deleted. Disallowance on account of write off of the investment made in Joint Venture - Held that:- Evidences brought before us have not been properly examined by the lower authorities. The evidences do indicate that the debt had become but in absence of their examination in the light of facts of this case, no proper conclusion can be drawn by this stage. Further, requisite facts regarding subsequent recovery and its inclusion in the income of subsequent years have also not been properly brought on the records and anlysed by the lower authorities. Under these circumstances, in the interest of justice, we find it appropriate to send this issue back to the file of the AO. Disallowance of long term capital loss arising from sale of shares - Held that:- It is true that since loss has been claimed by the assessee, therefore, primary onus lies upon the shoulders of the assessee to justify the same. But, it is equally true that no claim should be disallowed on the basis of mere surmises and conjecturers. It appears that in this case also both the parties lacked in their duties in terms of discharging respective onus lied upon them under the law. Therefore, we find it appropriate to send this issue back to the file of the AO. The assessee shall bring on record all the primary evidences to justify and substantiate the said claim. Addition u/s 14A - Held that:- It is admitted case that no exempt income has been earned during the year, therefore, Ld. CIT(A) correctly deleted the disallowance made by the AO For A.Y. 2012-13 disallowance sustained by the Ld. CIT(A) u/s 14A is hereby confirmed. It is noted that exempt income has been earned by the assessee during the year under consideration. Nothing has been brought before us that why disallowance of 0.5% of average value of investments as envisaged under rule 8D(2)(iii) should not be made in the given facts of this case. Further, nothing incorrect has been pointed out in the order passed by Ld. CIT(A) while confirming the disallowance.
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