2013 (10) TMI 166

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....this Court has admitted the instant appeal on the following substantial question of law : "Whether the learned Tribunal as well as the Appellate Authority and the Assessing Authority have committed substantial illegality by not recording the finding after considering the cases relied upon by the appellant during the course of hearing on the basis of material evidence on record ? The brief facts of the case are that during the assessment year under consideration, the assessee was dealing in export of pharmaceuticals and share trading. During the scrutiny, the A.O. opined that the assessee has made false claim for getting various deductions. So, he made an addition of Rs.1,05,96,010/-. In appeal, the first appellate authority as well as....

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..... D. Chopra, learned counsel for the department, at the strength of the written note, submits that the case of the assessee is fully covered under section 271 (1)(c) explanation 1(B) of the Act. He submits that during the assessment year under consideration, the assessee has borrowed interest bearing funds but gave the interest free loan to his wife. There is no nexus between interest free loan and the business activity. Regarding the foreign travel, he submits that the assessee never procured any business on account of the foreign travel of Sri Janak Raj Kwatra and Sri Sudhir Chaudhary. There was no proof even of ticketing or vouchers or actual expenditure. Expenditure was not for any business purpose and it was a pleasure trip. Rega....