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TaxTMI 
TaxTMI 
TaxTMI 
2018 (7) TMI 740
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....51,14,324/- being the unexplained credit entries in bank accounts maintained by the assessee as undisclosed income of the assessee U/s 69/69A of the Act. 4. Being aggrieved, the assessee carried the matter in appeal before the ld CIT(A) and submitted certain additional evidence which were forwarded to the AO for examination and comments. The ld. CIT(A) observed that during the remand proceedings, the assessee did not cooperate with the AO in the examination of such evidences and given that the primary onus of proving the genuineness of the claim rest on the assessee which the assessee has failed to discharge both during the assessment proceedings and the remand proceedings, he confirmed the addition of Rs. 81,66,134/- in the hands of the assessee. 5. During the course of hearing, the ld. AR has submitted that the assessee has regularly attended the assessment proceeding however, nothing was made available to the assessee and no opportunity has been provided to provide specific explanation regarding the entries and the entries in the bank account remained unexplained. It was further submitted that before the ld. CIT(A) the assessee presented documentary evidence which the assessee....
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....ed on 07.10.2016. However, we find that there is no mention thereof in the remand report or in the order sheet so submitted before us. At the same time, we find that the assessment records contains a letter dated 17.10.2016 addressed to the assessee calling for and furnishing of documents and books of account in pursuance to the letter received from the ld. CIT(A) vide letter no. 919 dated 07.10.2016. We further find that in response to the said letter dated 17.10.2016, the assessee vide its AR, M/s Sark Associates, Chartered Accountants has submitted written submissions dated 27.10.2016 which talks about production of books of account containing cash book, ledger, bank book, journal for verification of the Assessing Officer. 8. In light of above facts and circumstances of the case, it seems that the additional evidence submitted by the assessee during the course of remand proceedings has not been examined by the Assessing Officer and therefore, in the interest of justice, we hereby remand this matter to the file of the Assessing Officer to examine the same afresh in light of the additional evidence so submitted by the assessee, after providing reasonable opportunity to the assess....
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....ght the same to tax. It was further submitted that the assessee has not charged any interest on unsecured loans of Rs. 1,06,87,273/- as existing on 01.04.2011 and as the AO has applied and added interest @ 10% on FDR, the assessee be given benefit of availing the credit of interest on unsecured loans as existing in the financial statements of the assessee against the FDR interest. 13. In this regard, the ld. CIT(A) has returned a finding that the appellant is maintaining the books of account on mercantile basis and therefore the accrued interest should have been accounted for on such FDR and should have been declared as income during the year. We do not see any infirmity in the said finding of the ld. CIT(A). However, as far as the quantum of interest is same, the ld. AR has contended that the AO has presumed accrued interest @ 10% on FDR. In light of the same, we hereby directed the Assessing Officer to apply the interest rate as applicable on the specified FDR amount as prevalent during the relevant period. Alternative plea of the ld. AR cannot be accepted as it would be a case of fresh claim and there is nothing on record in terms of any interest of secured loans which has been....
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....eration observed that the assessee has made interest free advance of Rs. 90,00,000/- to M/s Ganpati Real Mart and Developers Pvt. Ltd. in which assessee was also one of the Directors. It was also noted by the Assessing Officer that the assessee has paid interest of Rs. 3,28,878/- as interest on over draft account held with the Bank of Baroda. It was observed by the AO that one of the conditions required to be satisfied U/s 36(1)(iii) of the Act is that the capital borrowed should have been utilized for the purpose of business, however in the instant case, the funds of the business are diverted towards interest free loans and the assessee has failed to establish any commercial expediency and business nexus in connection with interest free advances made to M/s Ganpati Real Mart and Developers Pvt. Ltd. Accordingly, a sum of Rs. 3,28,878/- was disallowed and added to the income of the assessee. Being aggrieved the assessee carried the matter in appeal before the ld CIT(A) who has confirmed the said addition. 17. During the course of hearing, the ld. AR has submitted that during the financial year 2009-10, the assessee had made an advance of Rs. 90,00,000/- to M/s Ganpati Real Mart an....
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....onsideration and in the assessment year 2010-11, the said fact has been accepted by the Revenue wherein the assessment has been completed U/s 143(3) of the Act. It has been further contended by the ld. AR that interest free funds available with the assessee are more than the interest free advance to M/s Ganpati Real Mart and Developers Pvt. Ltd. and therefore, it cannot be held that the borrowed funds from the over draft account have been diverted as advances to M/s Ganpati Real Mart and Developers Pvt. Ltd. It has further been contended that the said advance is for the purpose of purchase of shop which is in the posssession of the assessee however, for some technical reasons the registry has not been made in the name of the assessee. In our view, all these contentions needs to be verified and we accordingly, set aside the matter to the file of the Assessing officer to examine the said contention so raised by the ld. AR after providing reasonable opportunity to the assessee. In the result, ground is allowed for statistical purposes. 20. In ground No. 6, the assessee has challenged the disallowance of 30% of the diesel and fuel expenses of Rs. 1,00,000/- and repairs and maintenance....