2017 (1) TMI 1152

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....see is dealing in laminates, veeners, tiles, etc. During the course of scrutiny assessment, the Assessing Officer made disallowance on account of interest expenditure amounting to Rs. 27,46,796 under section 36(1)(iii). The Assessing Officer also made addition under section 68, on account of sundry debtors amounting to Rs. 34,15,666. 3. By the impugned order, the learned CIT(A) deleted the addition under section 68 of the Act on account of sundry debtors after observing as under:- "4.3 I have considered the finding of the Assessing Officer and rival submission o fthe appellant, carefully. I find that Ld. Assessing Officer has made this addition of Rs. 34,15,666 merely for want of details or evidences without issuing any specific....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bt is to be disallowed or to be added. Therefore, in the light of the above discussion, I find that Assessing Officer has made addition of Rs. 34,15,666/- without substantiating it whereas appellant has been successful in demonstrating the genuineness of receipt of sundry debt from M/s. National Laminate Corporation, who is regular assessee. Therefore, such addition of Z. 34,15,666/- is deleted." 4. The learned CIT(A), however, confirmed the disallowance of interest by observing that it was not for the purpose of business. Against this order of the learned CIT(A), both, the assessee and the Revenue are in further appeal before us. 5. We find that the disallowance of interest was made by the Assessing Officer on the plea that borrowed ....