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TMI Blog2023 (8) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessment years 2018-19 u/s. 143(3) r.w.s. 144B of the Income Tax Act, 1961 (hereinafter 'the Act'), vide order dated 05.08.2021. 2. The first issue in this appeal of assessee is as regards to the order of CIT(A) restricting the disallowance made by the AO of interest expenses restricting the rate at 14% as against claimed by assessee at 16% by invoking section 40A(2)(b) of the Act. For this, assessee has raised the following ground No.2 as an effective ground:- "2. The learned Commissioner of Income Tax (Appeals) erred in restricting the disallowance of the interest expenditure to Rs. 48,36,197/- u/s 40A(2)(b) of the Act by holding that the rate of interest at 14% would be reasonable considering the fact that State Bank of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccording to him, the same is reasonable rate of interest which could have been paid for the borrowable of loans from Shriram Properties Ltd., by the assessee. Therefore, he sustained the disallowance of interest at Rs. 38,36,197/- being 2% excess of interest. Aggrieved, now assessee is in appeal before us. 5. We have heard rival contentions and gone through the facts and circumstances of the case. The ld.counsel for the assessee Shri S. Anandan, first of all stated that the loans obtained by assessee from IIFL Wealth Finance Ltd., and Aditya Birla Finance Ltd., are secured loans and which are provided by these two concerns on the basis of providing security of equivalent amount of loan, whereas the loan obtained by assessee from sister con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quite reasonable and hence, we reverse the finding of CIT(A) on this issue and allow the appeal of assessee. 8. Coming to second issue raised by assessee by way of Ground No.3 that the intimation/processing of return u/s. 143(1) of the Act is not appealable order. For this, assessee has raised the following ground Nos.3 & 3.1:- "3. The learned Commissioner of Income Tax (Appeals) erred in dismissing the ground of appeal relating to error in computation of book profit u/s 115JB and additions made to the normal income in the intimation u/s 143(1) by holding that grounds relating to intimation u/s 143(1) can be addressed only by way of appeal preferred against the intimation u/s 143(1) and not in the appeal against the assessment order u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred if any on such order / intimation u/s 143(1) and not on the order u/s 143(3) against which the assessee filed the present appeal. Therefore, these grounds are dismissed as infructuous." Aggrieved, now assessee is in appeal before the Tribunal. 10. Before us, the assessee has raised the above mentioned two grounds on the issue of whether intimation issued u/s. 143(1) of the Act is appealable or not. 11. Now before us, the ld.counsel for the assessee took us through the assessment order computation part and stated that the AO has computed the income including the adjustment made u/s. 143(1) of the Act vide order dated 01.10.2019 and he referred to the following:- "5. After verification / examination of all the details called for and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .Senior DR took us through the provisions of section 246A of the Act, wherein by virtue of provision of section 246A(1)(a) of the Act, appeal against an intimation u/s. 143(1) of the Act is clearly provided w.e.f. 01.06.1999 by Finance Act, 1999. 13. We have heard rival contentions and gone through facts and circumstances of the case. We have gone through the main provision of section 246A of the Act and particularly clause (a) which reads as under:- 246A. Appealable orders before Commissioner (Appeals).-(1) Any assessee or any deductor or any collector aggrieved by any of the following orders (whether made before or after the appointed day) may appeal to the Commissioner (Appeals) against- (a) an order passed by a Joint Commissioner u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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