2020 (11) TMI 259

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....s inter alia that :- "That on the facts and circumstances of the case the learned ITO erred in making an addition and the CIT (A) in confirming the same of the sum of Rs. 29,23,804/- having interest & finance expenses u/s 36(1)(iii) of the Income Tax Act." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : Assessee, M/s. Maple IT Services Pvt. Ltd., has come up before the Tribunal challenging the impugned disallowance of Rs. 29,23,804/- i.e. 15% of the interest expenses of Rs. 1,94,92,033/- debited to the profit & loss account under section 36(1)(iii) of the Income-tax Act, 1961 (for short 'the Act') and made addition thereof to the total income of the assessee for Assessment Year 2011-12 on ....

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....t disputing the audited financials; that turnover of the assessee company during the year under assessment has gone up to Rs. 23.41 crores from Rs. 9.92 crores in the previous year; that assessee company has explained each and every entry in its account book qua payment of interest on the loan debited to the profit & loss account; and that no such addition has been made in the earlier years i.e. AY 2009-10 & 2010-11 wherein assessment has been framed u/s 143 (3) by making any such disallowance u/s 36(1)(iii) of the Act. 6. However, on the other hand, ld. DR for the Revenue to repel the arguments addressed by the ld. AR for the assessee contended inter alia that sufficient opportunity has been given to the assessee company by the AO as we....

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....ort to the assessee company. Both AO as well as ld. CIT (A) have made ad hoc disallowance on the reason that the bank statement has not been furnished by the assessee company to prove the utilization of the loan on which interest has been paid for the purpose of its business. Even it is difficult to make out the nature of the additional evidence, presumably entertained by CIT (A) for the reason that it is necessary for deciding the issue, from the impugned order. Entire findings returned by CIT (A) confirming the addition are bereft of plausible reasoning. 9. In these circumstances, we are of the considered view that to enhance the cause of justice, the issue is required to be factually examined in entirety by the AO by examining a....