TMI Blog2011 (5) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has credited the bank account - Held that:- The position of law is well settled that making of an entry or absence of an entry in the books of account cannot determine rights and liability of party - in view of the bank statement, the assessee is entitled to the deduction of interest as claimed by it - assessee has itself disallowed an amount of interest of Rs.4,80,00,000/- being not utilized for the purpose, the AO is directed to allow the balance amount of interest of Rs.3,65,59,646 - in favour of assessee. Carried forward of long term capital loss - Disallowance on the absence of any brokers notes and other details submitted - Held that:- AO and CIT(A) despite of the furnishing the debit note by the assessee has not examined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct notes in support of the said losses. It was further stated that the shares traded by the assessee and suffered losses on the same shares which are mentioned by the JPC in their report. The period under consideration is an extension of the scam period. The detailed discussion was made in the assessment order for Assessment Year 2001-02 about how the losses were created by the assessee group during the scam period. The losses during the AY 2001-02 were disallowed by the AO and the circumstances in this year have not changed. Though the assessee was given an opportunity of proving the loss as genuine, the assessee has failed to prove the same. In the absence of brokers notes/bills and corresponding entries in the books of account of the opp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances in this year have not been changed. In the assessment year 2001-02, the Tribunal in assessee's own case (supra) has set aside the issue to the file of the AO vide findings recorded in paragraph 6 of the order dated 30.3.2011 which are reproduced as under: "6. Considering the voluminous details filed before us supporting the assessee's claim and on perusal of the orders of the A.O. and the CIT(A), we are of the opinion that the A.O. has disallowed the clams on certain general principles about the Ketan Parekh group cases and observations of the JPC and SEBI without examining the individual details of the assessee company for the impugned year. In view of this, we are of the opinion that the matter requires re-examination by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviding reasonable opportunity of being heard to the assessee. The ground taken by the assessee is therefore partly allowed for statistical purposes. 10. Ground no.2 is against the sustenance of disallowance of interest of Rs.8,47,77,146/-. 11. The brief facts of the above issue are that it was observed by the AO that the assessee has debited an amount of Rs.8,47,77,146/- as interest liability not provided as per Note B(a) and (10) of Schedule 'L' of annual accounts. It has been mentioned in the audit report that the company has not provided for interest of Rs.8,45,64,646/- on secured loans from a bank for a period after 30th Sept. 2001. The bank also has not provided for the interest after the said date. The assessee has submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al. With regard to the amount of interest of Rs.2,12,500/- he submits that the same may also be allowed for the same reasons. At this stage, the learned counsel for the assessee also submits that the assessee itself has disallowed the interest of Rs.4,80,00,000/- being not utilised for the purpose of business as mentioned in the paragraphs 5 of the assessment order. He, therefore, submits that in the light of the above due relief be allowed to the assessee. 14. On the other hand, the learned DR supports the order of the AO and the learned CIT(A). 15. We have carefully considered the submissions of the rival parties and perused the material available on record. We find that the interest of Rs.8,47,77,146/- was disallowed on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st as claimed by it. However, keeping in view that the assessee has itself disallowed an amount of interest of Rs.4,80,00,000/- being not utilised for the purpose, the AO is directed to allow the balance amount of interest of Rs.3,65,59,646/- 17. With regard to the other item of interest of Rs.2,12,500/-, we find that neither there is any material nor there is any finding recorded either by the AO or by the learned Commissioner of Income Tax (A) on this issue, therefore, in the interests of justice, we set aside the issue to the file of the AO who shall decide the same afresh and according to law after providing a reasonable opportunity of being heard to the assessee. The ground taken by the assessee, is therefore, partly allowed for st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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