TaxTMI 
TaxTMI 
2022 (2) TMI 575
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.... law as well as on facts of the case. b. That the Hon'ble CIT(A0-1, Kol erred in law as well as on facts by confirming the additions made by the Ld. Assessing Officer who arbitrarily disallowed part interest expenses of Rs. 5,82,80,708/- for the period till March, 2012 on estimated basis, treating the same as prior period expenses that also without issuing a show cause notice and giving an opportunity to the appellant to furnish any explanation in regards thereto. c. That the Hon'ble CIT(A)-1, Kol erred in law as well as on facts by confirming the additions made by the Ld. Assessing Officer who did not appreciate the fact that though part interest pertained to earlier years, the actual payment/credit was made during the year by deductin....
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....erest income on the amounts borrowed by the appellant from IBFSL for the period 05.06.2009 to 31.03.2012 in the preceding years. Ld. AR pointed out the fact that IBFSL levied the interest and subsequently reversed it in the ledger account of the appellant in the preceding years. 5. Ld. AR invited the attention of the Bench to state that loan borrowed by the appellant from IBFSL is secured against shares and securities held by the appellant in his DEMAT account with IBFSL. Owing to dispute between the appellant and IBFSL, shares and securities in the DEMAT account of the appellant were sold by IBFSL during the year under consideration by which it realized all of its dues of Rs. 20,26,62,695/- including principal and interest for the period ....
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.... DR invited our attention to the impugned assessment order to point out that the assessee debited an amount of Rs. 6,78,58,646/- on 16.11.2012 in his books of account being interest from 05.06.2009 to 16.11.2012 for which the Ld. AO held that it comprises of arrear interest for the period from 05.06.2009 to 31.03.2012. The Ld. AO computed the interest for the period from 01.04.2012 to 16.11.2012 i.e. period comprised in the year under consideration @ 12% for Rs. 95,77,738/- and made a disallowance of Rs. 5,82,80,708/- (Rs. 6,78,58,646 - Rs. 95,77,738) and added it back to the total income of the assessee for the previous year 2012-13 relevant to assessment year 2013-14. 8. We have heard the rival contentions made by the learned representat....