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2020 (5) TMI 573 - AT - Income TaxAddition u/s 36(1)(iii) - Less interest charged from the partners - A.O. disallowed the difference of the interest actually charged i.e. @12% and the interest that should have been charged i.e @15% - HELD THAT:- Assessee has paid interest on unsecured loans during the impugned year at an average rate of 10% which is demonstrated from the facts and figures of unsecured loan and interest paid thereon reflected in the financial statements of the assessee which are duly audited. The revenue has been unable to controvert before us. Since the basic premise with the revenue for making disallowance in the present case U/s 36(1)(iii) was that the assessee had charged less interest on the advances made to its partners and others as opposed to that paid on borrowings made by it, the same does not survive since the assessee has demonstrated that it had actually paid less interest on borrowings and charged more from the partners and others. In view of the above, the disallowance made U/s 36(1)(iii). Addition u/s 68 - treating loans received as ingenuine and unexplained - bank statements submitted of these parties showing transactions were either unreadable or incomplete or were not submitted at all - HELD THAT:- Since the assessee has demonstrated before us that the bank statements of all the loan givers was filed to the revenue authorities and is therefore, available, we consider it fit to restore the issue back to the A.O. to consider the bank statements of all the loan depositors alongwith other evidences filed and adjudicate the issue afresh thereafter in accordance with law. Accordingly, ground of the appeal are allowed for statistical purposes only.
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