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TMI Blog2015 (10) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... reciate that the assessee firm had not been able to prove that the discounting charges have been paid wholly and exclusively for the purpose of the business of the assessee. 3.On the facts and in the circumstances of the case and in law, the learned CIT(A) failed to appreciate that the assessee was given opportunity to produce the copies of bills of discounting/finance charges which were not produced at the time of original assessment as well as at the time of fresh assessment. 4.The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the AO be restored. 5.The appellant craves leave to amend or alter any ground or add a new ground which may be necessary. 2.Assessee-firm,engaged in the business of tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the transactions were routed through banking channels,that it had repaid the principle amount of funds borrowed from time to time,that it had produced the necessary documentary evidences in support of the claim,that the discounting charges were in nature of interest paid on monies borrowed,that same had to be allowed as a deduction u/s.36(1)(iii)of the Act, that the facts in the present appea1 were identical to the case of M/s. Delta International,that under identical circumstances disallowance of discounting charges/finance charges had been deleted in group cases by the FAA.After considering the submissions of the assessee and the assessment order,he held that that the issue for the appeal under consideration was identical to the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06 passed in ITA No.639/M12004 restored the issue to the file of A.O. with a direction to examine as to whether such discount/interest was incurred by the assessee in carrying on of its business. This order was passed by the Tribunal by following another order by the Tribunal in the case of another group concern of the assessee the"Fellowship corporation vs.JCIT[ITA No.4352/MumI2001]. Pursuant to the direction given by the Tribunal, the Assessing Officer repeated the addition towards finance charges in the present case. The learned CIT(A), however deleted the said addition. The Revenue has come up in appeal against such deletion.The ld. AR has brought to our notice that the issue under consideration is squarely covered with the findings of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... milar deduction was allowed.The present assessment order was passed by the AO on 18.12.2006 after filing of the above referred documents by the assessee.It is surprising that the Assessing Officer did not make a whisper, in the assessment order of such details having been filed by the assessee What to talk of adversely commenting ,the A.0.even did not bother to incorporate or discuss such facts in the assessment order. This fact has been elaborately considered by the learned CIT(A), the discussion on which has been made in par as 1.10 to 1.14 of the impugned order. On the appreciation of the entire material /evidence placed by the assessee before the A.O. in the fresh round of proceedings,the learned CIT(A) has recorded a categorical findin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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