2021 (9) TMI 593

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....e said to be erroneous or prejudicial to the interest of revenue. The order u/s. 263 is without proper jurisdiction. 2. The order passed u/s. 263 was also without giving proper opportunity of hearing to the appellant. On account of epidemic the ld. CIT was not justified in not granting proper opportunity of hearing. 3. The ld. CIT had erred in observing that the interest and bank commission claimed by the appellant is not allowable. The ld. CIT had failed to appreciate that the funds were mainly invested in her proprietorship business and were used for the propose of business. The ld. CIT had erred in observing that he claim of such interest and commission amounting to Rs. 50,36,464/- is apparently not allowable and was erroneously allo....

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....e mainly from her family members. Out of these funds 5.29 crores funds were invested in her proprietorship business. It was contented that during the course of assessment proceeding the AO vide his letter dated 5.7.2017 made a specific query in this regard and asked about allowability of such interest claimed u/s. 57. This letter was shown to us and is placed at page 29 of the paper book. The reply by the assessee dated 13.7.2017 was shown at page 31 of the paper in which it was submitted that the interest has been paid on loans taken from the family members and these funds had been invested in the business carried on as proprietor. Again in letter dated 17.7.2017 submitted by the assessee it was stated that these loans taken had been inves....