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TMI Blog2014 (8) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... . ... [A] Whether the Appellate Tribunal has substantially erred in considering the reopening as bad in law without appreciating the fact that the assessee had not disclosed the details of interest payment to relatives in the Return of income and the issue was also not discussed in the assessment order. This is a clear case of allowance of excessive deduction and limitation of reopening within 4 years from the assessment year was therefore not applicable in this case? [B] Whether the Appellate Tribunal has substantially erred in considering the payment of interest @ 24% to related parties as reasonable when the same is paid @ 15% to outside parties for A.Y. 2003-04 and the assessee had not established business exigency for payment of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 9% as the excess interest paid to the related parties." 3. Thereafter, notice under Section 148 of the Act was issued on 30.03.2010 and the AO passed the reassessment order holding that the amount of Rs. 43,05,343/- paid to the relative parties with interest at the rate of 24% is in excess of the interest at the rate of 15% paid to the unrelated parties and consequently disallowed the same. 4. That, feeling aggrieved and dissatisfied with the reassessment order passed by the AO, challenging the initiation of the reassessment proceedings itself as well as on merits, the assessee preferred appeal before the learned CIT(A) and the learned CIT(A) dismissed the appeal preferred by the assessee, by holding that AO was justified in initiating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders passed by the AO, the learned CIT(A) as well as that of the learned Tribunal. 8. At the outset, it is required to be noted that the learned CIT(A) confirmed the reassessment initiated by AO, by observing that there was no true and correct disclosure by the assessee with respect to the interest paid to the relative parties at the rate of 24% per annum. However, in the impugned judgment and order, the learned Tribunal has specifically recorded the finding that the assessee did furnish the relevant information asked for by the AO. Before the learned Tribunal, it was pointed out by the assessee at Page Nos. 11 and 12, on Item Nos. 3, 4, 20 and 24 of the letter, Dated : 20th December, 2004, issued by the AO by which all the details had ..... X X X X Extracts X X X X X X X X Extracts X X X X
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