9911796707
TMI Blog2023 (12) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1961 [the Act], dated 11/8/2021. 2. At the outset, the Ld. AR submitted that there is a delay of 24 days filing the appeal. The Ld. AR drew our attention to the petition, along with an affidavit, filed by the assessee seeking condonation of delay wherein the assessee explained the reasons for belated filing of the appeal before the Tribunal. The relevant portion of the affidavit is extracted herein below for reference: "1 ...... 2. The Managing Partner Sri M. Ashok Chowdary a senior citizen was stuck with dengue fever from the last week of November 2022. He was advised to take rest for 3 weeks and again he was stuck with Flu and hence there was a delay of above 23 days. In fact the work was entrusted to L Vaitheswaran & Co., Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince the assessee sought adjournment to this notice, the Ld. AO issued another notice u/s. 142(1) and served on 5/1/2021. The Ld. AO further issued another notice u/s. 142(1) of the Act on 25/1/2021 and 19/2/2021. The assessee once again sought adjournment and the Ld. AO thereafter issued a show cause notice dated 5/3/2021 requesting the assessee to furnish its submission through e-portal by 10/3/2021. In response, the assessee furnished replies on 24/3/2021. Another show cause notice was again issued by the Ld. AO on 25/5/2021. Since the assessee did not furnish any information, the Ld. AO concluded that the assessee has nothing to submit in support of its contention. From the details filed by the assessee, the Ld.AO observed that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming the addition of interest paid to Bank of Baroda amounting to Rs. 4,52,58,180/-. 3. The Ld. CIT(A) on one hand accepted the interest paid to Axis Bank amounting to Rs. 1,07,92,909.27 and disallowing interest paid to Bank of Baroda. 4. The Ld. CIT(A) did not give any reason for disallowance of the interest payment amounting to Rs. 4,52,58,180/-. 5. The Ld. CIT(A) is not justified in confirming the addition of Rs. 86,76,158/- u/s. 69A of the Act. 6. The Ld. CIT(A) ought to have seen the draft assessment order passed by the Ld. AO where no such addition was made. 7. The Ld. CIT(A) ought to have verified that no notice u/s. 69A was placed before the appellant." 6. Additionally, the assessee has also filed a petition for ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de u/s. 43B of the Act and pleaded that it should be deleted. 10. With respect to the addition u/s. 69A of the Act, the Ld. AR referred to the legal ground and argued that since it is a limited scrutiny case for the issue of "business loss", no additions can be made u/s. 69A of the Act which is beyond the jurisdiction of the Ld.AO. The Ld. AR further submitted that section 69 does not fall within the scope of 'profits and gains of business or profession' and hence it cannot be considered as a business loss and no addition can be made. In support of his argument, the Ld. AR relied on the decision of this Bench in the case of Vishnu Srinivasa Rao Kakarla vs. ITO, ITA No.93/Viz/2023 (AY: 2018- 19), dated 15/06/2023. He therefore pleaded that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal ground, we find from the record that it is a limited scrutiny proceedings for examining "business loss". In case, if the Ld. AO wants to take up the case for complete scrutiny, first the Ld. AO has to convert the limited scrutiny into complete scrutiny case and then he may take up the case for complete scrutiny with the prior approval of the Ld. Pr. CIT / CIT concerned after being satisfied about the issue of converting it into a complete scrutiny. In the instant case, we find that no such approval has been granted to the Ld. AO. We therefore find that the Ld. AO has travelled beyond his jurisdiction in treating the cash deposits u/s. 69A of the Act which is not valid in law and therefore we are inclined to delete the addition made b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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