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TMI Blog2022 (2) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Commissioner Appeal's should have observed that the Assessing officer has not recorded satisfaction with regard to genuineness of the transactions entered by the appellant and not provided an opportunity. 3. That the Learned Commissioner Appeal's has not verified that bank statement disbursement of loan amount. 4. That the learned Commissioner Appeal's has erred both on the facts and in Law. 5. That the Learned Commissioner of Appeal should have examined the utilization of loan amount after loan disbursement by the Bank. The Learned Commissioner of the Appeal ignores the facts of the case and utilization of funds. 6. The Appellant hereby reserves the right to add, delete, or amend the grounds of appeal at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the loan was utilised for the purpose of business of M/s. Bright Petroleum being the proprietorship of assessee and that it was utilised to pay to IOCL as a part of assessee's business. It was also submitted by assessee that loan was reflected in the personal balance sheet of Shri Rajib Chowdhury as on 31.03.2011 and that the utilisation of the fund was only for the purposes of M/s. Bright Petroleum. The Ld. AO rejected the submissions of assessee and added the same of Rs. 18,38,596/- in the hands of the assessee. 2.4. Aggrieved by the addition made, the assessee preferred appeal before the Ld. CIT(A). The Ld. CIT(A) while deciding the issue observed and held as under: "7. Now, the facts in the case of the appellant are th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d hence, the claim and allowability of any interest in that case is to be governed as per partnership deed and the relevant provisions of the Law. To consider the claim of interest paid to the bank as a deduction in the case of the appellant as proprietor of M/s. Bright Petroleum, it needs to be examined whether the loan has been utilized for the purpose of the business of the appellant. The nature of the business of the appellant i.e. M/s. Bright Petroleum is retail trading in petroleum, diesel and oil etc in its Petroleum Outlet. The appellant has neither explained nor brought anything on record to show how investment in Bright Construction Corporation has served business purpose of M/s. Bright Petroleum or what was the commercial expedie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the submission filed by assessee dated 03.08.2021, assessee has placed summary of payments made subsequent to the loan having waived. All these details along with the balance sheet from the year in which such loan was taken needs to be looked into before coming to such conclusion. We note that Ld. CIT(A) has not called for any details to verify the contentions of the assessee. The entire disallowance is based on surmises and conjectures and therefore cannot be appreciated. We are therefore inclined to remand this issue to the Ld. CIT(A) to carry out necessary verification in respect of the details filed by assessee. The assessee is thus directed to file all the relevant documents in support of its contention and the utilisation of the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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