TaxTMI 
TaxTMI 
2014 (2) TMI 504
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....The AO during the assessment proceedings noted that despite several opportunities nobody appeared on behalf of the assessee to furnish details and evidences. The AO, therefore, completed assessment ex-parte u/s 144 of the Income Tax Act. The AO noted that the assessee had claimed business expenses of Rs. 3693669/- but no business activity had been carried out during the year. He, therefore, allowed only the monitory expenses required for running the company at Rs. 1,00,000/- and the balance claim was disallowed. 3. The assessee disputed the decision of AO and submitted before CIT(A) that the assessee company was under lock out and had been declared a sick company by BIFR. There was, therefore, temporary suspension of the business activit....
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..../Mum/2010 held that expenses have to be allowed as business expenses as the business of the assessee had not closed. The facts in the present case are identical and therefore the claim has to be allowed. The learned DR on the other hand placed reliance on the orders of authorities below. 5. We have heard both the parties perused the records and considered the rival contentions carefully. The dispute is regarding allowability of expenses amounting to Rs. 3693669/- claimed by the assessee as business expenditure. The AO allowed only a sum of Rs. 1,00,000/- out of these expenses holding that the assessee had not carried any business activity. In appeal CIT(A) has held that there was no possibility of starting the business again and, therefo....
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....of Rs. 174814096/- on 31.3.2005. There was thus addition to the unsecured loan by Rs. 12618164/- during the year. The assessee did not file any loan confirmations nor any material to establish the identity and capability of the creditors. The AO therefore added a sum of Rs. 12618164/- as income of the assessee u/s 68 of the IT Act. In appeal CIT(A) observed that the assessee did not file any evidence to prove the identity and creditworthiness of the creditors. The assessee filed confirmations from five parties only subsequent to the date of hearing on 14.10.2009. CIT(A) did not admit the additional evidences on the ground that the assessee had not been prevented by any sufficient cause from production of the same before the AO during the as....
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....fore, in such a situation the difficulty faced by the assessee in filing the confirmation and other evidence before AO has to be appreciated and these additional evidences in our view were required to be considered by CIT(A) as the same were useful in deciding the issue. We, therefore, in the interest of justice admit the additional evidences in the form of loan confirmations as done by the Tribunal in assessment year 2004-05 (Supra). We accordingly set aside the order of CIT(A) on this issue and restore the matter to the file of AO for passing afresh order after necessary examination and after allowing opportunity of hearing to the assessee. 9. The assessee has also filed an additional ground regarding treatment of income of Rs. 197800/....