2019 (3) TMI 1843

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....ce made u/s 40(a)(ia) of the Act (c) Direction given u/s 150(1) of the Act 2. The assessee is engaged in the business of dealing in DEPB licence. The first issue relates to the disallowance of reimbursement of expenses. The assessee had claimed a sum of Rs. 26.47 lakhs as reimbursement of expenses. The AO was of the view that the same has been paid to a person named Manoj Pandey and issued notice u/s 133(6) of the Act. Since the notice was returned with the remarks "Not known", the AO deputed inspector to serve the notice. However, the inspector reported that no such address or no such person exists. No other details were furnished by the assessee. Hence the AO disallowed the entire claim of Rs. 26.47 lakhs. The Ld CIT(A) also confirmed ....

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....t has been claimed to have been paid to M/s Sonal Enterprise (Rs. 5.00 lakhs) and Shri Krishna P Vaidya (Rs. 2.20 lakhs). Since both these payments require examination, we restore them to the file of the assessing officer for examining them. 5. The next issue relates to the disallowance made u/s 40(a)(ia) of the Act. The AO disallowed interest expenses of Rs. 7,35,036/- paid on unsecured loans as the assessee failed to prove that due TDS was deducted from the payments. The Ld CIT(A) also confirmed the same. 6. The Ld A.R submitted that the assessee has paid interest to four parties, out of which he has deducted tax at source from the payments made to two parties. With regard to the remaining two parties, the Ld A.R submitted that the paye....

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....deration, but assessable in another year. He submitted that this kind of finding is contemplated in sec.150(1) of the Act. He submitted that the expenses have been disallowed in the current year for want of proper explanations and the Ld CIT(A) has confirmed the disallowance for the very same reason. The direction given by the Ld CIT(A) was general in nature covering past and subsequent years. He submitted that such kind of direction cannot be given by Ld CIT(A). 10. On the contrary, the Ld D.R submitted that the Ld CIT(A) has not given any blanket direction to reopen the assessment of any other years. He submitted that the Ld CIT(A) has stated the AO should conduct appropriate enquiries and after recording reasons, the assessment should b....