2021 (12) TMI 494

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....s and in the circumstances of the case and in law the learned CIT(A) failed to admit the additional evidences u/r 46A whereas the same is admissible as the appellant was prevented by suff icient cause from producing before the AD evidences which are relevant to Business advances and Donations. Thus order passed without considering evidences is bad in law and against the principal of natural justice. The Appellant prays that order passed is wi thout considering the evidences f iled and observance of principal of natural justice hence needs to be quashed". Grounds for Disallowance of Interest Rs. 53,72,694/- u/s 36(1) (iii) 2. On the facts and in the circumstances of the case and in law the learned CIT(A) failed to admit the addition....

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....ly estimated and guess that appellant had total interest income of Rs. 14,44,194/- and out of which only 7,22,097/- was shown in prof it & loss a/c and balance Rs. 7,22,097/- not taken whereas the fact is the appellant has interest income only of Rs. 7,22,097/- which is also reported in 26AS. The learned CIT(A) has made this addition on assumption basis ignoring the clarif ication f iled by Auditor dt. 09/10/2019 that "by mistake interest amount of Rs. 7,22,097/- mentioned in Tax Audit Report at Sr. no.16(d) and appellant has correctly shown interest income in company's P&L Account". The Appellant prays that Interest income of 7,22,097/- which is taxed twice shall be deleted Grounds for Allowance of Deduction u/s 80G of Rs. 1,7....

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....18-12-201 referred at Para 3.2 of the order. The A.O dealt on the provisions of Sec. 36(1)(iii) of the Act and the judicial decisions and calculated the proportionate disallowance u/s 36(1)(iii) of the Act by applying the rate @ 12% on interest free loans and advances and restricted disallowance to Rs. 53,72,694/-. 3. Similarly, on perusal of the Tax Audit report the A.O found that the assessee has not disclosed the interest income and the A.O is of the opinion that the income is not offered for taxation and made addition of Rs. 7,22,097/-. Further, the A.O. made the disallowance of donations claimed as business expenditure as the assessee has failed to submit original receipts of Rs. 4,51,000/- and assessed the total income of Rs. 93,99....

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.... the case with the evidences before the lower Authorities. Contra, the Ld. DR relied on the order of the CIT(A). 6. We heard the rival submissions and perused the material on record. The sole crux of the disputed issue is in respect of admission of additional evidence which was rejected by the CIT(A) for various reasons.The contentions of the Ld. AR are that the additional evidence play a vital role in decision making and in the assessment proceedings, the assessee could not submit the details in respect of the interest payments, loans and advances, interest free loans and the donations receipts as the assessee Legal representative (LR) could not appear on particular day before the assessing officer(A.O) in the scrutiny proceedings as hi....