2015 (10) TMI 1089

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....aw: Whether on the facts and in the circumstances of the case the Tribunal erred in law in not allowing the claim of the assessee of interest u/s.36(1)(iii) of the I.T.Act, 1961 when on the contrary the ingredients for claiming the deduction u/s.36(1)(iii) of the Act was present in the instant case and further the requirements for claiming the said deduction was satisfied by the assessee and whether the decision arrived at by the Hon'ble Income Tax Appellate Tribunal by ignoring the same and without arriving at an independent finding as to how the claim of the assessee was not sustainable is perverse ? The facts, as evident from the stay application filed by the appellant which is a part of the Paper Book, are that the appel....

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....of Rs. 3,60,000/- in connection with the security deposit given by the appellant to the landlords for taking the said premises for its business purposes and also the disallowance of the entire payment of rent of Rs. 63,000/- for the said premises. The CIT(A) allowed the appeal by deleting the disallowance of Rs. 3,60,000/- and 63,000/- on the ground that the Assessing Officer had incorrectly disallowed the interest expenditure as well as rental expenditure. Aggrieved, the revenue preferred appeal before the Tribunal. The Tribunal by the impugned order allowed the appeal by holding as under: "We have considered the rival submissions. We find that the A.O. specifically requested the assessee to file necessary evidence in support o....

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....ing Officer, were filed before the Assessing Officer, the Tribunal should have considered the same and should have allowed the appeal dismissing the appeal filed by the revenue. Relying on the judgement of the Calcutta High Court in Tirupati Trading Co. v. CIT (Cal) : (2000) 242 ITR 13 (Cal), Mr.M.P.Agarwal, learned advocate appearing on behalf of the revenue has submitted that save and except a letter stating that the property was used for commercial purpose which was filed before the Tribunal, as no other evidence was furnished, the order of the Tribunal may not be interfered with. Heard learned advocates for the parties. Perusing the impugned order, we find that the Tribunal had observed that though the Assessing Officer had spe....