TaxTMI 
TaxTMI 
2017 (11) TMI 1083
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....f the assessee and dismissed the appeal of the Department modifying the order of the Commissioner of Income-tax (Appeals) whereby the Commissioner of Income-tax (Appeals) has allowed the appeals in favour of the assessee. 3. In Appeal No. 460 of 2009, originally the matter was admitted by the order dated September 2, 2009 only on one issue which was subsequently amended by us on February 24, 2017 pursuant to the application preferred by the Department which reads as under : "(i) Whether in the facts and circumstances of the case, the Income-tax Appellate Tribunal was justified in law in deleting and restricting the trading additions which were made after rejecting the books of account under section 145(3) of the Act ? (....
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....ooks of account under section 145(3) of the Act ? (ii) Whether in the facts and circumstances of the case, the Income-tax Appellate Tribunal was justified in law in allowing the deduction under section 80-IA when the assessee does not fall in the same ? (iii) Whether in the facts and circumstances of the case, the Income-tax Appellate Tribunal was justified in law in directing to allow the higher rate of interest to the persons specified under section 40A(2)(b) of the Act ?" D. B. Income Tax Appeal No. 72 of 2010 admitted on February 3, 2011 : "(i) Whether in the facts and circumstances of the case, the Income-tax Appellate Tribunal was justified in law in allowing the deduction under section 80-IB when the ass....
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....d in confirming the order of Commissioner of Income-tax (Appeals) of deleting the addition of Rs. 3,15,647 made by the Assessing Officer on account of interest paid to specified persons under section 40A(2)(b) ? (iii) Whether under the facts and circumstances of the case the Income-tax Appellate Tribunal is justified in confirming the order of Commissioner of Income-tax (Appeals) directing the Assessing Officer to allow expenses of insurance of Rs. 80,122 relating to earlier year ?" 4. Counsel for the appellant has taken us to the order of the Assessing Officer as well as the order of the Commissioner of Income-tax (Appeals) and contended that the issue of section 145(3) which has been adjudicated by the Assessing Officer has wr....
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....ding year, it is seen that while finalizing the assessment proceedings for the assessment year 2004-05, the Assessing Officer has not made any additions on this account. Thus, considering the accounting method of the assessee, this expenditure is not allowable in this year, hence the same is disallowed and added back to the total income of the assessee." 7. The Tribunal while considering the observations of the Commissioner of Income-tax (Appeals) which is contrary to the evidence on record has observed in para 10 as under : "10. The fourth ground of the Revenue is as under : On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals), Kota has erred in deleting the disallowance o....
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....y held that the assessee has satisfied all the conditions in order to avail benefit of section 80-IA of the Income-tax Act. Apart from that, learned advocate for the appellant-Revenue is not in a position to show how the findings of the Tribunal are bad in law and on facts. In that view of the matter, we do not find any error in the order of the Tribunal. Hence, the present appeals are dismissed. Accordingly, the question of law posed in these appeals is answered in favour of the assessee and against the Revenue." 12. In view of the observations made, the second issue is also answered in favour of the assessee. 13. With regard to issue of loan which was advanced by the family members, the Tribunal has rightly observed in para....