TMI Blog2018 (12) TMI 1670X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A). Disallowance of interest expenses u/s.36(l)(iii) - HELD THAT:- As decided in BHOGILAL RAMJIBHAI ATARA [ 2014 (2) TMI 794 - GUJARAT HIGH COURT] AO undertook exercise to verify records of so called creditors and found that creditors had no dealing with assessee - Assessing Officer further having found that debts were outstanding since several years applied section 41(1) and added above amount in income of assessee as deemed income - There was nothing on record to suggest that there was remission or cessation of liability that too during previous year relevant to assessment year Addition in respect of the old, brought forward liability - HELD THAT:- Addition originally made by the A.O. in respect of the old, brought forwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Ld. CIT(A)- XIV, Ahmedabad dated 05.08.2014 pertaining to A.Y. 2010-11 and following grounds have been taken: i) The Ld. Commissioner of Income tax (A) has erred in law and on facts in deleting the addition of Rs.l33,02,075/- on account of understated production/suppressed production. ii) The Ld. Commissioner of Income tax (A) has erred in law and on facts in deleting the disallowance of interest expenses of ₹ 1,92,000/- made u/s.36(l)(iii) of the Act. iii) On the facts and circumstances of the case, the Ld. Commissioner of Income tax (A) ought to have upheld the order of the Assessing Officer. iv) It is, therefore, prayed that the order of the Ld. Commissioner of Income tax (A) may be se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t satisfied and held that the highest burning loss is claimed by the assessee in the month of Dec-09 at 9,00% and lowest at 6.72% in May-09 thus there was wide gap in the claim of burning loss, which remained un-explained by the assessee. And held that has under stated production/suppressed production and made addition of ₹ 1,33,02,075/-. 5. Against the said addition, assessee preferred first statutory appeal before the ld. CIT(A) who granted relief to the assessee. 6. We have gone through the relevant record and impugned order. As we can see, assessee had supplied all the relevant details to the lower authorities such as register which are subject to regular check and subject to audit, Raw material Register, produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reditors had no dealing with assessee - Assessing Officer further having found that debts were outstanding since several years applied section 41(1) and added above amount in income of assessee as deemed income - There was nothing on record to suggest that there was remission or cessation of liability that too during previous year relevant to assessment year 2007-08 - Whether in peculiar facts of case amount in question could not be added back in income of assessee as deemed income under section 41(1) - Held, yes [Para 8] [In favour of assessee] 9. As we can see facts of the assessee case is identical to the above said judgment therefore, respectfully following the aforesaid judgment, we are not inclined to interfere in the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have dismissed ground of the department in ITA No. 3065/Ahd/2014 have given because in this addition of ₹ 2,67,837/- originally made by the A.O. in respect of the old, brought forward liability of this amount towards M/s. Om Steel, which was reflected in the books under the head Advance from custormers . The finding of judgment in the case of CIT vs. Bhogilal Ramjibhai Atara will apply to this ground as well. Therefore, we allow this objection of the assessee. 12. So far ground no. 2 of C.O. is concerned with regard to confirming the addition of ₹ 14,029/- is concerned, being unexplained expenditure for setting up shed because for constructing a shed, assessee did not included the payment of labour charges and assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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