2016 (3) TMI 825

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed, untenable and uncalled for. The provisions of section 40A(2)(a) of the IT. Act, 1961 have been misconstrued and misapplied in the appellant's case. 2. That the Ld. Commissioner of Income Tax (Appeals) is not justified in holding that under the facts and circumstances is to be fair and reasonable to restrict the rate of interest to 15% as against 18% claimed by the Appellant and 12% allowed by the Appellant. The disallowance of interest which works out to Rs. 3,38,140 is untenable and contrary to law. The facts of the case and market rate of interest has been ignored to be considered properly by the Ld. Commissioner of income Tax (Appeals). 3. While framing the assessment, the Assessing Officer disallowed a sum of Rs. 6,76,279/- on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... out that the disallowance made in assessment year 2006-07 by the Assessing Officer on account of interest has been deleted by the ld. CIT(Appeals) vide his order dated 11.11.2012 in appeal No. 605/IT/CIT(A)/ASR/08-09. The relevant findings of the ld. CIT(Appeals), Amritsar are as under: "5. Shri J P Bhatia, Advocate, the ld. Counsel for the appellant appeared and on the date of hearing on 9.11.2012, furnished written submissions of accounts relying thereunder the case laws cited as Ram Avtar Garg v. ITO, reported at (2010) 4 ITR (JP) 245. The main thrust of the appellant is on the fact that whereas partner's capital contributed was Rs. 61.75 lakhs as against the family deposits of Rs. 1.02 crores which were necessary for the business ....