TMI Blog2021 (4) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... nery was produced before the Assessing Officer as well as before the Appellate Authority i.e. CIT(A). CIT(A) further observed that no proof of creation of charge of machinery in favour of bank was filed. AR submitted that all the relevant documents were submitted before the Assessing Officer as well as before the CIT(A), but the same was not verified by the Assessing Officer as well as by the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e grounds of appeal are as under : - 1. (a) That on the facts and in the circumstances of the case, the Ld. CIT(A) has erred in sustaining the disallowance of interest of ₹ 99,14,425/- under proviso to Section 36(1)(iii) of the Income Tax Act, 1961. Observations made, inferences drawn and findings recorded in this regard are not only arbitrary and illegal but smack of prejudice as well. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owable as per proviso to Section 36(1)(iii) of the Act and disallowed the same. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. The Ld. AR submitted that the assessee has given details of interest expenses as debited in the profit and loss account in respect of interest on loan from PNB amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 3,48,04,787/-. The same was purchased from the loan availed and the internal accrual of the company. A certificate from the bank regarding completion of project was given by the assessee along with details of machinery purchased, thereby depicting the fact that 76% of the project was completed by September, 2011. The machinery was purchased and put to use during the previous year ending 31/3/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer as well as by the CIT(A). Therefore, it will be appropriate to remand back the issue to the file of the Assessing Officer for proper adjudication in respect of the evidences produced by the assessee and thereafter pass an appropriate order in accordance with law. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. 8. In result, the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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