TMI Blog2013 (11) TMI 1063X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer did not examine the books of account before arriving at the finding of charging of lower interest and also did not refer the matter for special audit - Unless the books of accounts are rejected addition cannot be made - Decided against Revenue. - Income Tax Appeal No. - 328 of 2013 - - - Dated:- 21-11-2013 - Hon'ble Sunil Ambwani And Hon'ble Surya Prakash Kesarwani,JJ. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO only asked for the figures which was not provided by the assessee. B. Whether ITAT erred in law in substituting its own views regarding the mode of investigation/queries to be made by the AO or the method to be adopted by the AO which may or may not suit the assess can be determined by the ITAT. C. Whether ITAT was justified in law in confirming the deletion by CIT (A) without appreciatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not entitled to interest received on the loans given by the bank to various categories of borrowers. The Tribunal found that there is no provision in the Income Tax Act empowering the Income Tax Officer to include in the income of the assessee of the interest, which was not due or collected. 5. In the present case the assessee had produced audited books of account before the Assessing Officer, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or direct for special audit and averaged the interest on adhoc basis arbitrarily on all kinds of advances. For example in the case of staff loan, the rate of interest was shown to be from 4.50 % to 10.50 %. The Assessing Officer averaged the interest at 7.5% on the entire advances, and added Rs.2,96,22,000/- as interest income on advances. 6. The Tribunal further found that the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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