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TMI Blog2023 (1) TMI 373X X X X Extracts X X X X X X X X Extracts X X X X ..... r dated 28.03.2015. 2. At the outset, it is noticed that this appeal is barred by limitation by 28 days as noted by the Registry. The facts are that the order appealed against i.e., the appellate order of CIT(A) dated 14.12.2017 was received by assessee only on 14.12.2017 as noted in Form No.36. The appeal was to be filed on or before 12.02.2018 whereas the appeal was filed before Tribunal only on 12.03.2018. The ase has filed condonation petition dated 07.07.2018, wherein it has clarified that the date of receipt of order of CIT(A) is dated 22.12.2017 whereas they have wrongly mentioned the date of receipt of order of CIT(A) in Form No.36 as 14.12.2017. It was also explained that the date on which appeal ought to have been filed is 20.02. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aving sundry debtors and other investments amounting to Rs.28,51,676/- from which, this amount of Rs.21 lakhs was invested as capital in the firm. The AO noted that the partner Shri K. Najmul Hasan has returned the income for assessment year 2012-13 at Rs.20,19,656/- and not Rs.28 lakhs as claimed. It was also noted by AO that there is drawing of Rs.6,77,130/- and cash belongs in the partners statement of affairs is not actually cash as entries relates to share of profit and remuneration are not paid by the firm by way of cash. Therefore, he added the assessee's introduction of capital in the firm amounting to Rs.21 laks as unexplained. Aggrieved, assessee preferred appeal before CIT(A). The CIT(A) deleted the addition of Rs.10 lakhs accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,656/- and admittedly, there is a withdrawal of Rs.6,77,130/- during the year as cash as admitted by AO in assessment order while rejecting the assessee's explanation. We noted that there is no dispute that out of Rs.21 lakhs, the CIT(A) accepted the explanation of Rs.10 lakhs availability with the assessee which is out of withdrawal from the firm on 05.03.2011 just one month before. For balance Rs.11 lakhs, we are of the view that the assessee is able to explain the same out of the returned income of Rs.20,19,656/- and withdrawals admitted by AO at Rs.6,77,130/-. Hence, we delete the addition on merits and allow the appeal of assessee on this ground. This issue of assessee's appeal is allowed. 7. The second issue in this appeal of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e evidence. It is clear that there is a huge debit balance of Rs.1,41,78,744/- in the accounts of the partners. The argument that partners belong to a community where interest was not charged cannot be a valid explanation. It is immaterial whether interest was charged or chargeable. What is important to examine is the funds of the firm have been used for the purposes other than business when there is huge borrowings. IT is also not proved by way of fund flow statement that credit availed were used only for business purposes and not diverted for any other purpose. Neither during the assessment proceedings nor during the appellate proceedings has the appellant given satisfactory explanation on the balance in the accounts of partners. In the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is issue of assessee's appeal. 10. The next issue in this appeal of assessee is as regards to addition by disallowance of interest on TDS of Rs.69,058/-. 11. We have heard ld. Senior DR and gone through the case records. There is no disallowance by the AO. However, the CIT(A) has disallowed this interest paid on TDS of Rs.69,058/- and debited to the profit & loss account as interest paid. WE noted that this issue is covered in favour of Revenue and against assessee by the decision of ITAT, Ahmedabad in the case of ITO vs. Royal Packaging in ITA No.1363/Ahd/2010, wherein it is held that interest on late payment of direct taxes is not deductible. Hence, we confirm the addition and dismiss this ground of assessee's appeal. 12. In the result ..... X X X X Extracts X X X X X X X X Extracts X X X X
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