TaxTMI 
TaxTMI 
TaxTMI 
2022 (4) TMI 146
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.... the receipt in next year. It is double taxation to the appellant. 2. The Ld. CIT- (A) has also erred in disallowances of interest to the extent interest free loans and advances given for different years. 3. The Id. C1T-(A) has also erred in not considering the submission made before AO and learned CIT by your appellant. It is therefore submitted that relief claimed above be allowed and the order of the Assessing Officer be modified accordingly. Your appellant reserves right to add, alter, amend to withdraw and or all Grounds of Appeal. 3. The 1st issue raised by the assessee is that the learned CIT(A) erred in confirming the order of the AO by sustaining the addition made on account of difference of income reported in the return of income viz a viz in form 26AS issued by the Income Tax Department. 4. The AO during the assessment proceedings observed certain differences between the income declared by the assessee in the return of income viz a viz the income reported in form 26 AS. The details of the difference of the income stand as under: Name of the person from whom income received. Income as reported in 26AS Income as per details of income/ IDS claimed details ....
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....rest received from Indian Bank is concerned, the appellant has accepted that the bank had issued wrong certificate to him which, pertained to year AY.2010-11 in place of correct year of 2009-10. Accordingly, mistake has been committed in the appellant's return of income. But the fact remains that the interest received by the appellant during the year is Rs. 3,75,573/- as against Rs. 1,96,069/- shown by the appellant in his return of income. Hence, the addition made by the AO on this account is upheld. 5. Being aggrieved by the order of the learned CIT-A, the assessee is in appeal before us. 6. The learned AR before us contended that the difference in the income reported by the assessee is mainly arising due to the fact that the income pertaining to the month of March 2010 has been accounted in the subsequent month. According to the learned AR, the assessee has been following this practice since many years which was also accepted by the revenue. 7. On the contrary, the learned DR vehemently supported the order of the authorities below. 8. We have heard the rival contentions of both the parties and perused the materials available on record. Admittedly, the assessee is follow....
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....ked out the proportionate amount of interest of Rs. 10,77,000/- on such interest free loans and advances and added to the total income of the assessee. 11. Aggrieved assessee preferred an appeal to the learned CIT (A) who allowed the ground of appeal of the assessee in part by observing as under: 5.3. I have considered the facts of the case, the submission of the appellant and the AO's observations. The appellant in its grounds of appeal has himself stated that his books of accounts not only represent business figures, but also merged persona! transaction which has absolutely no relevant with the business. Under such circumstances, onus is on the appellant to show that the interest free loans and advances given to others for non-business purposes have been paid out of interest free fund available with him and not out of interest bearing fund. In this respect, no efforts have been made by the appellant. As a matter of fact, even the copy of audit report has not been furnished during the course of the appellate proceedings to show that such interest free advances given to others on personal account are out of interest free funds, despite the fact that the AO had issued a speci....
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.... loan and advances made in the year under consideration is of Rs.6.25 lakhs which was extended out of interest free amount. As per the learned AR the interest-free fund available with the assessee is of Rs. 81,76,946/- only. The learned AR to this effect has filed the chart demonstrating the availability of interest free funds with the assessee which is available on record. 14. On the contrary the learned DR vehemently supported the order of the authorities below. 15. We have heard the rival contentions and perused the materials available on record. Admittedly, the majority of the amount was advanced as loans to the parties in the earlier years except a sum of Rs. 6.25 lakhs. Undeniably, there was no disallowance was made by the revenue in the earlier year for the amount of interest attributable with respect to such loans and advances extended by the assessee. Accordingly we are of the view that, there cannot be any disallowance on account of interest expenses on the amount of loans advances which were extended in the earlier years. In holding so draw support and guidance from the judgment of Hon'ble Karnataka High Court in the case of CIT Vs. Sridev Enterprises reported in 192 I....