1989 (12) TMI 90

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....ay details of the expenses as the same was stated to have been spent through the cook and the details were not available. The learned counsel for the assessee contended that the head office of the company is situated atDelhiand the employees were attending to the business of the company at various places and were staying in the guest house of the company. It was, accordingly, contended that the food, snacks provided to the employees of the company while on duty cannot be considered to be an entertainment expenditure and accordingly, there was no justification for disallowance of Rs. 42,044. 2. We have given our careful consideration to the issue involved in this case. The main ground for rejecting the claim of the assessee is that day toda....

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....hts to file objections on any other ground not taken before the assessing officer. The learned counsel further contended that the CIT(A) was not justified in not entertaining the objection of the assessee-appellant. 4. The learned Departmental Representative Miss Krishna Sahai contended that since the objection was not raised before the assessing officer, the IAC could not have entertained the objections filed before him. She accordingly, supported the orders of the CIT(A) and that of the assessing officer. 5. We have given our careful consideration to the issue involved in this case. We cannot resist to point out that the IAC grossly erred in not entertaining the objections of the assessee during the course of proceedings under s. 144B. ....

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....assessee's counsel to address us on merits. We have also heard the Senior learned Departmental Representative Miss Krishna Sahai and accordingly dispose of the grounds of appeal on merits. 6. The first objection related to disallowance of Rs. 11,370, being the interest paid to directors of the company and disallowed under s. 43A(8) of the Act. The assessing officer disallowed sum of Rs. 96,489 on account of interest under s. 49A(8) being interest on borrowed funds. The learned counsel pointed out that the disallowance was warranted on the basis of the Special Bench decision of the Tribunal in the case of KALOOMAL SHORIMAL SACHDEV RANGWALIA (P) LTD. vs. ITO reported in (1985) 23 TTJ (Bom) 132 (SB) : (1985) 14 ITD 248 (Bom) (SB). However, th....