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TMI Blog2017 (3) TMI 1854X X X X Extracts X X X X X X X X Extracts X X X X ..... interest expenditure of Rs. 11,85,430/-. 2. The Id. CIT(A) has confirmed the disallowance by observing that before the assessing officer the Appellant himself unequivocally agreed for the disallowance of interest expenditure by withdrawing submission filed on 20/11/2011, vide order sheet entry dated on 24/11/2011. 3. The Id. CIT(A) ought to have appreciated that the Appellant vide letters dated 20/10/2011 and 20/11/2011 submitted and explained to the Id. AO that the alleged interest free advances is nothing but the business advances provided to the various parties and therefore no disallowance of interest can be made. 4. The Id. CIT(A) ought to have appreciated that the accountant of the Appellant had signed the order sheet entry dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on facts in confirming the action of Id. AO in initiating penalty proceedings u/s 271(l)(c) of the Act." 3. When this appeal was called out for hearing, learned counsel for the assessee submitted that all he prays for at this stage is for the matter being remitted to the Assessing Officer for fresh adjudication on merits. He points out that accountant of the assessee had, under a mistaken impression, signed the proceedings sheet which stated that it is an agreed addition, and, therefore, according to learned counsel, the matter should now be examined on merit. It is also pointed out that the learned CIT(A) has, on the ground of alleged concession by the accountant during the assessment proceedings, not examined the matter on merits. Lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I would have never made detailed submissions along with evidences to establish that interest bearing funds had been utilised for business purpose only." 6. It is also elementary that there cannot be any estoppels against the law. In case the assessee has given a concession, based on mistaken assumption of facts of law, such a concession cannot come in the way of assessee's statutory right for assessment of income in accordance with the law. In my considered view, therefore, the matter should be remitted to the file of the Assessing Officer for adjudication on merits in accordance with the law, by way of a speaking order and after giving yet another opportunity of hearing. I order so. As this issue regarding disallowance of interest is be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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