TMI Blog2021 (12) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... e ends of justice and considering the principles of natural justice, we set aside the order of the CIT(A) and restore the entire disputed issue along with the additional evidence to the file of the CIT(A) to adjudicate fresh on merits and the assessee should be provided adequate opportunity of hearing. The assessee should cooperate in filling the information for early disposal of the appeal and allow the grounds of appeal of the assessee for statistical purposes. - ITA No. 1155/Mum/2020 (A.Y: 2016-17) - - - Dated:- 17-9-2021 - SHRI S RIFAUR RAHMAN, ACCOUNTANT MEMBER PAVAN KUMAR GADALE, JUDICIAL MEMBER Appellant by : Shri Bhupendra Sahu. AR Respondent by : Shri S.N.Kabra. DR O R D E R PER PAVAN KUMAR GADALE JM: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities of the appellant. 3. On the facts and in the circumstances of the case and in law the learned CIT(A) erred in estimating the notional fictitious interest income of ₹ 94,72,099/- worked out @ 12% on Business advance and thereby fully disallowed compensating the actual interest expense of ₹ 53,72,694/- against such notional income without verifying and appreciating the fact that the advances paid are business advance directly related to the appellants business. The Appellant prays that Interest of ₹ 53,72,694/- shall be allowed and order passed is wi thout considering the evidences filed and observance of principal of natural justice hence needs to be quashed . Grounds for Addition of Interest Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 3,51,000/- which comes to ₹ 1,75,500/- Grounds for deletion of Interest and Penalty 8 . On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in charging interest u/s 234A,B,C D and initiated penal ty u/s 271(1)(C) and 271(1)(b). 2. The Brief facts of the case are that, the assessee company is engaged in the business of construction activities. The assessee has filed the return of income for the A.Y 2016-17 on 17.10.2016 disclosing a total income of ₹ 26,78,160/-and the return of income was processed u/s 143(1) of the Act. Subsequently the A.O. has issued notice u/s 143(2) and 142(1) of the Act along with questionnaire. In compliance, the Ld. AR of the assessee furnished the det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed the addition as the assessee could not file the satisfactory explanations. Further, in respect of interest income the CIT(A) has confirmed the action of the A.O. Whereas, with respect to disallowance of donations, the CIT(A) has granted the partial relief. Further the CIT(A) has rejected the additional evidence filed in the course of appellate proceedings as the evidences were not filed explaning the sufficient and reasonable cause and partly allowed the assessee appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon ble Tribunal. 5. At the time of hearing, the Ld. AR made submissions on the admission of the additional evidence which was rejected by the CIT(A). The contention of the Ld. AR that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has not submitted the details in the course of assessment proceedings. The assessee has filed the additional evidences before the CIT(A) but were not accepted by the CIT(A). The contentions of the Ld.AR that the evidences filed u/r 46A of the I T Rules are in respect of Business loans and advances and donations which are relevant and play a vital role in decision making. 7. We considered the facts, circumstances, additional evidences and the paper book filed in support of non submission of the evidence due to reasons beyond the control of the assessee. We find the reasonable cause explained by the assessee in respect of the death of the father of the CA/ AR who appeared before the Assessing officer cannot be overruled. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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