9911796707
TMI Blog2017 (3) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... duced additional evidences with the request to accept the same under Rule 29 of the Income Tax Appellate Tribunal Rules, 1963. It was argued that the additional evidences did not require any further investigation facts and were in support of the main contention raised before the First Appellate Authority(FAA), that the details of bank account would help in deciding the issue before the bench. The Departmental Representative (DR)left the issue to the discretion of the bench. After considering the details of the bank accounts, filed by the assessee, we are of the opinion that it would help us to decide the grounds of appeal contested by the assessee. Therefore, we admit the additional evidences produced by the assessee. 2. Details of dates o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , pertaining to the loan of Rs. 10 crores, was claimed as deduction from the income from other sources. The assessee enclosed a copy of interest account of Dena bank overdraft account as well as a copy of Ledger account of FHMPL. After considering the submission of the assessee the AO held that submissions made by it were factually incorrect, that the perusal of overdraft account statement of Dena Bank revealed that during the year under appeal the assessee had made total withdrawal of Rs. 39.30 crores, that the bank had debited total interest of Rs. 3.99 crores, that out of the total withdrawals Rs. 10 crores was advanced to FHMPL, that balance amount was given a advances towards purchase of property, that Rs. 1.34 crores, being difference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... funds from overdraft account and partly from the pre-matured deposit of Rs. 3 crores, that balance 3 crores were received as unsecured loan from Ashok Mittal, that there was joint overdraft balance of Rs. 36.43 crores before the date of issue of loan, that directly/indirect the overdraft proceeds were used for the purpose of issuing of the loan and the assessee had earned interest on the loan given and the interest income was assessed as income from other sources, that it was entitled for deduction of proportionate interest expenses amount from the interest income u/s.57, that the rate of interest charged on the loan was at the rate of 13.5% which was 1% more than the 40 interest rate of 12.5%. Before the FAA, the assessee had produced cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he remand report and rejoinder to the report, the FAA held that assessee had claimed interest expenditure of Rs. 57.29 lakhs, that it had tried to set it off against interest income of Rs. 61.87 lakhs, that it had claimed that a term loan of Rs. 10 crores was advanced to FHMPL on which interest income of Rs. 61.87 lakhs was earned, that the assessee had also claimed that the overdraft of Rs. 10 crores was financed from overdraft account, that in the remand report the AO had found that the assessee had advanced loan of movies 864.50 lakhs and Rs. 135.50 lakhs on 16/10/2007 from its current-account CA-GN26545 on which interest was paid by the assessee, that it had not made any interest on the loans advanced i.e. Rs. 10 crores, that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue of availability of fund and advancing of funds from the account of Ashok Mittal to the assessee have not been verified properly. We have admitted additional evidences that were not available to the lower authorities, but they throw light on the dispute before us. From the bank statement it is clear that at least Rs. 3 crores were advanced on behalf of Ashok Mittal. It is also a fact that Dena Bank had extended loan facility in favour of six entities. In our opinion, the AO/FAA had not deliberated upon the said issue as the assessee had not furnished the necessary details before them. Therefore,we are of the opinion that in the interest of justice, matter should be restored back to the file of the AO for fresh adjudication, who would d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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