TMI Blog2012 (7) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... g with interest free fund available with the assessee - There is no direct nexus between interest bearing borrowed fund with interest free advances in the assessment order - assessee’s appeal is allowed - ITA No. 1156/Ahd/2010 - - - Dated:- 1-6-2012 - Shri G.C.Gupta, and Shri T.R. Meena, JJ. By Appellant : Shri Anil R. Shah, A.R. By Respondent Shri Nimesh Yadav, Sr. D.R O R D E R PER : T.R.Meena, Accountant Member This is assessee s appeal arises out of order of CIT(A)-XIV, Ahmedabad, order dated 16.02.2010 for assessment year 1995-96. The effective grounds of appeal are as under:- "1 The learned CIT(A) has erred both in law and in fact in holding that Sec. 36(1)(iii) of the Act, applies and thereby confirmi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the CIT(A) as well as that of Assessing Office and remit the matter back to the file of Assessing Officer to reprocess the claim by affording a reasonable opportunity of being heard to the assessee and in accordance with law. Accordingly the A.O. issued notice u/s 143(2) on 19.06.2008, the assessee din not turn up and furnish any evidence in support of his claim. He again disallowed the interest of Rs.21,70,651/-. 4. Being aggrieved by the order of the A.O., the assessee was in second appeal before ld. CIT(A)-XIV, Ahmedabad, who has confirmed the addition by observing the following:- As per my questionnaire, the show cause was very specific. The appellant does not have any satisfactory explanation for any of its questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the form of questionnaire issued by the ld. CIT(A)- XIV, Ahmedabad, dated 08.01.2010, shows that the share capital was at Rs. 34.05 lacs and reserve and surplus of Rs. 82,82,489/-, the total of the both amount is Rs. 1.17 crore. The assessee has given interest free loan to sister concern at Rs. 1.20 Crore which is more less matching with interest free fund available with the assessee. The matter is old. Books account has been seized by the Central Excise Department. The company has closed down its business. There is no person to complete the legal formalities. 6. Another side, the ld. D.R., vehemently argued that the assessee has not co-operated with the A.O. as well as ld. CIT(A). Therefore, he argued for confirmation of the addition. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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