TMI Blog2016 (10) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... s. On this the assessee told the Assessing Officer that they may be called directly, but he never issued any summon u/s. 131. It is of the view that Ld. CIT(A) has rightly observed that the Assessing Officer should have examined the documents and after that if needed should have summoned the share applicants and on this account the Assessee cannot force any one to appear before the AO. Therefore, the assessee has discharged his responsibility in giving the details. In view of this, Ld. CIT(A) has rightly deleted the addition - Decided in favour of assessee Disallowance towards interest on the ICD - Held that:- AO asked the assessee to explain that why this interest should not be disallowed. The assessee submitted the details of ICD, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned order dated 28.9.2015 of Ld. CIT(A)-4, New Delhi pertaining to assessment year 2007-08. The grounds raised in the revenue s appeal reads as under:- 1. On the facts and in the circumstances of the case and law, the Ld. CIT(A) erred in deleting an addition of ₹ 10,00,000/- made by the AO u/s. 68 of the Act disregarding AO s finding that the parties are entry operators. 2. On the facts and in the circumstances of the case and law, the Ld. CIT(A) erred in deleting and addition of ₹ 13,89,056/- made by the AO on account of interest on ICD disregarding the fact that the assessee failed to file any proof to support its contention that the loan was borrowed for business purposes. 3. Further, on the facts and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led the present appeal before the Tribunal. 5. Ld. Sr. DR has relied upon the order of the AO and reiterated contentions raised in the grounds of appeal filed by the Revenue. 6. On the other hand, Ld. Counsel of the Assessee has relied upon the order of the Ld. CIT(A) and stated that Ld. CIT(A) has passed a well reasoned order which does not need any interference on my part, hence, the same may be upheld and accordingly, the appeal of the Revenue may be dismissed. 7. I have heard both the parties and perused the records, especially the impugned order passed by the Ld. CIT(A). I find that Ld. First Appellate Authority has elaborately discussed the issue in dispute by considering the submissions of the assessee and adjudicated the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect to interest of ₹ 13,89,056/- on the ICD. As per the AO, the assessee was asked to explain that why this interest should not be disallowed. The assessee though submitted the details of ICD, but did not give any explanation as to why it should not be disallowed, as per the AO. But even if it is so, the conclusion is wrong that the assessee has nothing to say in this regard when he has debited it in the profit and loss account. After all the interest on ICD is an allowable expense of the business and the AO asking such a question that why it should not be disallowed, appears to be out of the way. It is for the AO to prove that any expenditure in profit and loss account has to be bogus if he is disallowing the same. This addition is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer that they may be called directly, but he never issued any summon u/s. 131. I am of the view that Ld. CIT(A) has rightly observed that the Assessing Officer should have examined the documents and after that if needed should have summoned the share applicants and on this account the Assessee cannot force any one to appear before the AO. Therefore, the assessee has discharged his responsibility in giving the details. In view of this, Ld. CIT(A) has rightly deleted the addition of ₹ 10 lacs as unexplained cash credit which does not need any interference on my part, hence, I uphold the order of the Ld. CIT(A) on the issue in dispute and reject the ground no. 1 raised by the Revenue. 7.2 With regard to disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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