Appeal delay condoned, reassessment ordered on unaccounted interest.

The delay in filing the appeal was condoned due to valid reasons provided by the assessee. The tribunal directed the Assessing Officer to re-examine the addition of unaccounted interest based on relevant documentation and the actual liability of the assessee, emphasizing the importance of considering all aspects rather than relying solely on TDS figures. The issue was remanded for reassessment, granting the assessee a fair opportunity to present their case. The appeal was allowed for statistical purposes, with the decision pronounced on December 16, 2019.

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Issues: Condonation of Delay, Addition of Unaccounted Interest

Condonation of Delay:
The appeal was filed with a delay of 59 days, and the assessee submitted an affidavit explaining the reasons for the delay. The reasons included the appellant's oversight due to travel and subsequent forgetfulness. The tribunal found the reasons sufficient to condone the delay and proceeded to adjudicate the appeal.

Addition of Unaccounted Interest:
The core issue revolved around the addition of Rs. 8,18,695 under section 69C. The Assessing Officer disallowed 30% of the interest payments made by the assessee to a financial institution due to discrepancies in TDS particulars. During the first appellate proceedings, the CIT(A) restricted the addition to Rs. 8,18,695 after considering the Form No.26AS provided by the payee, which showed a different payment amount than the one recorded by the assessee. The tribunal, upon hearing arguments from both sides, directed the Assessing Officer to re-examine the issue based on the loan agreement, EMI particulars, actual interest payable, and TDS provisions. The tribunal emphasized the importance of considering the documentation and the assessee's liability in interest payments, rather than relying solely on TDS figures. The issue was remanded to the Assessing Officer for reassessment, with directions to grant the assessee a fair opportunity to present their case.

In conclusion, the appeal was allowed for statistical purposes, and the decision was pronounced on December 16, 2019.

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