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TMI Blog2024 (11) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred to as 'the Act') dated 01.03.2021. The assessee has raised the following grounds of appeal: - "1. The Ld. CIT(A), NFAC has erred and was not just and proper on the facts of the case and in law in confirming the addition of Rs. 5,30,895/- (1,10,985/- + 4,20,000/-) and passing an ex parte order. 2. The Ld. CIT(A), NFAC has erred and was not just and proper on the facts of the case and in law in not considering submission of the "Assessee" which was uploaded on the portal on20/07/2022 whereas the order was passed by LD CIT(A), NFACC on 02/08/2022. 3.1 The addition may be kindly deleted. 3.2 Personal hearing may be granted. 3.3 Any other relief that your honours may deem fit maybe granted. 4. The assessee crave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ials. Therefore, the assessee having left no option but to file present appeal before Tribunal. Since assessee was pursuing alternative remedy before Ld.CIT(A)/NFAC thus, there is no intentional or deliberate delay on the part of assessee rather assessee was going under bona fide advice. The Ld. AR for the assessee submits that delay in filing appeal may kindly be condoned. On merit of the grounds of appeal, the Ld. AR for the assessee submits that while passing assessment order Assessing Officer made addition / disallowance under section 36(1)(iii) of the Act on account of interest free advance by assessee by taking view that assessee has paid interest on various parties and has not charged any interest on the money landed by assessee. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has availed loan of Rs. 16,36,297/- on the same time assessee paid advance interest free loan to various persons. Thus, Assessing Officer rightly disallowed the addition of interest. So far as addition on account of household expense is concerned, the assessee having in a big category resides like Surat city and has shown only meagre withdrawal as claim which are not sufficient. The Assessing Officer had estimated household expenses of assessee @ Rs. 40,000/- per month which is very reasonable. 4. I have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. First I will consider the plea of condonation of delay of 597 days in filing appeal. Before me, Ld. AR for the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded by Assessing Officer in his order. Before me, the assessee has filed copy of his reply. In the said reply it is stated that disallowance of interest, if any, is to be made on actual basis and not on hypothetical basis. The assessee has furnished complete details with supporting documents in the form of Annexure-E and details of loan advances in Annexure-E. The assessee also explained that as a routine practice in textile industry, a temporary loan is given to associate concerned as per needs on which neither interest is charged nor interest is given as the interest amount are nominal. The amount of loan is adjusted in debit or against in credit entry. The assessee has received and given interest free loan to Shreeji Creation and Sw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficient to meet day-to-day expenses. I find that no benefit of withdrawal of Rs. 78,400/- is allowed by Assessing Officer. The assessee is living in the house owned by his father. Thus, considering the overall facts and circumstances of the case, in my view, the total household expenses of four members of a family is not less than Rs. 30,000/- per month in City Light, Surat. Thus, the assessee is allowed benefit of Rs. 1.20 lacs plus (+) his own withdrawal of Rs. 78,400/- and rest of the addition to the extent of Rs. 2,81,600/- is sustained. In the result, second part of ground No. 1 is partly allowed.
6. In the result, the appeal of the assessee is partly allowed.
Order pronounced in open court on 27th November, 2024. X X X X Extracts X X X X X X X X Extracts X X X X
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