TaxTMI 
TaxTMI 
2015 (2) TMI 249
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....y this consolidated order for the sake of convenience. 2. First, we take up the appeal filed by the Revenue, i.e. ITA No.1130/Ahd/2011 for AY 2007-08. The Revenue has raised the following grounds of appeal:- 1. The Ld.CIT(A) has erred in law and on facts in deleting the disallowance of Rs. 16,03,831/- out of interest expenses. 2. The Ld.CIT(A) has erred in law and on facts in deleting the addition of Rs. 1,04,802/- made on account of discrepancy in AIR. 3. On the facts and circumstances of the case, the Ld.Commissioner of Income tax (A) ought to have upheld the order of the Assessing Officer. 4. It is, therefore, prayed that the order of the Ld.Commissioner of Income tax (A) may be set-aside and that of the Assessing Officer be restore....
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....n request application of the assessee. The assessee made another application dated 07/08/2014 making a similar submission that due to unavoidable circumstances, the assessee was not in a position to appear before the Tribunal on the date fixed on 11/08/2014. On 11/08/2014, the matter was adjourned to 22/09/2014. On 22/09/2014, the matter was further adjourned to 31/10/2014. The assessee filed an application dated 30/10/2014 making similar prayer that due to unavoidable circumstances, the assessee was not in a position to appear before the Tribunal on the date fixed. The appeal was fixed for hearing on 10/12/2014. The assessee has neither filed any adjournment application nor appeared before the Tribunal. Thus, from the records, it is transp....
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....- "4.1. I have considered the submissions made by the A.R. of the appellant and the observations of the assessing officer in the assessment order. A.O. has not established that interestbearing funds were advanced interest-free. In the absence of such nexus being established, the disallowance of interest (at the notional rate of 11%) cannot be sustained. It is deleted. This ground of appeal is allowed." 5.1. After considering the totality of the facts as well as the material on record, we find that the order of the ld.CIT(A) is non-speaking, hence cryptic. Moreover, the finding as given by the ld.CIT(A) that the AO has not established that the interest-bearing funds were advanced as interestfree funds which is contrary to records. We find ....
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.....Sr.DR, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has decided this issue by observing as under:- "5.2. In have considered the submissions made by the A.R. of the appellant and the observations of the assessing officer in the assessment order. Appellant's contentions are tenable. A.O. did not make any inquiry with M/s.J.B.Chemicals. Appellant's explanation before the A.O. (mentioned at para-5 of the assessment order) remains uncontroverted. Hence, impugned addition is unwarranted. It is deleted. This ground of appeal is allowed." 8.1. After considering the submissions of the ld.Sr.DR and perusal of the material available on record, we are of the considered view....
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....ed that the order of the ld.CIT(A) is justified. He further submitted that the issue is no more res integra as the Hon'ble Jurisdictional High Court has decided the issue in favour of the Revenue in the case of CIT vs. Gujarat State Road Transport Corporation reported at (2014) 366 ITR 170 (Guj.). 14. We have heard the ld.Sr.DR perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has decided this issue vide para-3.2 of his order by observing as under:- "3.2. I have considered the submissions made by the A.R. of the appellant and the observations of the assessing officer in the assessment order. As regards employee's contribution, it is governed only by Sec.36(1)(va) and ....