2016 (2) TMI 85

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....the point the learned Commissioner of Income tax (Appeals) - XXVI, New Delhi (learned CIT (A)) has erred in dismissing the appeal of the Appellant without providing adequate opportunity of being heard in the matter, and therefore the impugned Order is bad in law and deserves to be set aside. 2. That within the facts and circumstances of the case and the law on the point the learned CIT (A) has erred in not admitting additional evidence, thus violating Rule 46A of the Income tax Rules, 1962 as the agreements to sell produced before the learned CIT (A) made it evident that there exists a clear nexus between the interest income earned on fixed deposit receipt and interest paid on overdraft account but the CIT(A) made no attempt to understan....

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....uction under section 36(1)(iii) of the Act and has further erred in relying on the explanations of the learned A CIT that "the borrowed funds on which interest was paid were used for making advance payments for purchase of properties has no nexus with any business activity for the reasons that the interest earned on fixed deposit receipt was not in any way connected with any business activity of the Appellant", and that the rejection of the arguments of the Appellant is simplicitor and without providing any reasons therefore, and therefore, the impugned Order is erroneous and is bad in law and deserves to be set aside. 3.3 That within the facts and the circumstances of the case and the law on the point the learned CIT (A) has erred in di....

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....er the context so requires. " 2. Briefly stated the facts of this case are: during the processing of return of income filed by the assessee qua the Assessment Year 2009-10 declaring taxable income at Rs. 88,74,769/-, the case was subjected to scrutiny and consequently, notices u/s 143(2) and 142(1) of the Act were served upon the assessee and in response thereto Shri Rakesh Jain CA/ AR attended the proceedings and filed necessary details and documents. 3. The assessee claimed deduction U/S 57 of the LT. Act, 1961 to the tune of Rs. 27,29,491/- and on query, assessee filed the details of interest claimed and the assessee was show caused as to why the interest deduction and claimed u/s 57 of the Act amounting to Rs. 27,29,491/- shall not b....

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....application for admission of additional evidence filed by the assessee under Rule 46A of I. T. Rules, 1962 merely on the basis of remand report sent by Assessing Officer by recording following findings:- "8. I have considered the facts of the case, submissions of the appellant with regard to admission of additional evidence, remand report of the Assessing Officer, appellant's rejoinder. The Assessing Officer has rightly pointed out in his remand report that the "copies 'of agreement to sell" submitted as an additional evidence made it evident that the amount taken from overdraft account was actually spent on purchase of the property, which was also stated in the assessment order. The Assessing Officer opined that submission of the....