TMI Blog2015 (11) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... irrespective of the amount declared in the return of income because the claim of the assessee appears to be genuine. Therefore, we hereby direct the Ld. Assessing Officer to compute 5% of the turnover as admitted by the assessee and not as declared by the assessee in its return of income. Further, we find that the assessee has claimed interest paid to its partners as allowable deduction in accordance with Section 44AF(2) of the Act. The Ld. CIT (A) has not examined this issue in detail but brushed aside the claim of the assessee by stating that no evidence is available before him to establish that the interest has been actually paid to the partners. On this issue, we are of the considered view that one more opportunity should be provided to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nth,JCIT, D.R ORDER PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: The assessee has filed eight appeals out of which four appeals relate to quantum appeals and the other four penalty appeals. The assessee is in appeal before us aggrieved by the separate orders of the Learned Commissioner of Income Tax(Appeals), Puducherry with respect to quantum addition in IT Appeal No.354/CIT(A)-PDY/13-14, in IT Appeal No.353/CIT(A)-PDY/13-14, in IT Appeal No.352/CIT(A)- PDY/13-14, in IT Appeal No.351/CIT(A)-PDY/13-14 vide order dated 25.03.2015 passed under section 143(3) r.w.s. 147 of the Act and with respect to penalty in IT Appeal No.442/CIT(A)-15/13-14, in IT Appeal No.443/CIT(A)-15/13-14, in IT Appeal No.444/CIT(A)-15/13- 14, in IT Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er revised at the time of hearing Total Income declared(`) Remark 1 2004-05 26.03.2009 28,27,956 29,09,999 (-) 3,500/- Filed beyond the time limit specified u/s.139(4) of the Act. The return was lodged. 2 2005-06 26.03.2009 32,03,700 32,03,700 7,247/- Filed beyond the time limit specified U/s139(4) of the Act. The return was lodged. 3 2006-07 26.03.2009 26,53,510 30,73,077 5,591/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence:- 5.2 All the grounds of appeal filed are for the disallowance of claim of interest on capital. I have perused the order of the assessment passed by the Ld. Assessing Officer. I find that the Assessing Officer had computed the income of the firm U/s.44AF of the IT Act @ 5% of the total turnover as the appellant failed to maintain books of accounts in respect of the business activity. The ground of the appellant was that interest on capital should be allowable as deduction. No claim was made before the Assessing Officer in this issue. The proviso to Section 44AF(2) prescribes for allowability of interest paid to its partners if the interest is actually paid to the partners. In the instance case, no evidence is availabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT (A) has not examined this issue in detail but brushed aside the claim of the assessee by stating that no evidence is available before him to establish that the interest has been actually paid to the partners. On this issue, we are of the considered view that one more opportunity should be provided to the assessee to furnish the evidence in regard to the payment of the interest to its partners and accordingly we remit the matter back to the file of the Ld. Assessing Officer to examine the scope of the applicability of Section 44AF(2) of the Act and to pass appropriate order as per merit and law. 5. Penalty appeals U/s.271(1)(c) of the Act in ITA No.1462,1464,1466 1468/Mds./15 In all the above stated cases, the Ld. Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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