TaxTMI 
TaxTMI 
2022 (11) TMI 177
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.... which i * in grave violation of principles of natural justice and consequently the appellant order requires to be cancelled on the facts and circumstances of the case. 4. The learned CIT[A] erred in confirming the addition made by the learned assessing officer of Rs. 4,80,069/- being loan taken against the Birla Sun Life Policy on the facts and circumstances of the case. 4.1. The learned CIT [A] failed to appreciate that loan taken against the Birla Sun Life Policy is an opening balance which was carried forward from the previous year and 5. The learned CIT[A] erred in confirming the disallowing made of 50% of Salaries Wages amounting to Rs.22,54,413/ on the facts and circumstances of the case. 6. The learned CIT[A] erred in confirming the action of the learned assessing officer in disallowing 50% of Insurance expenses amounting to Rs.63,156/- on the facts and circumstances of the case. 7. The learned CIT[A] erred in confirming the disallowing made of 50% of staff welfare expenses amounting to Rs.22,87,847/- on the facts and circumstances of the case. 8. The learned CIT[A] erred in confirming the action of the learned assessing officer in disallowing Other Expenses to ....
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....tiny under CASS and statutory notices were issued to the assessee. During the course of assessment proceedings, the various notices were sent to the assessee and email was also sent to the assessee but the assessee did not respond properly as per the requirement of the AO(Assessing Officer). Accordingly, AO issued show cause to the assessee on 14.11.2018 proposing for assessment u/s 144 of the Income Tax Act. 1961. Even the assessee did not respond to the show cause notice issued by the AO. Thereafter, the AO completed the assessment u/s 144 of the Act on 18/12/2018 and determined income as under:- Income from house property - Rs.1,65,426/- Income from business or profession - 86,68,09,207/- Income from capital gains - Rs.66,32,560/- Income from other sources - Rs.20,90,900/- 4. Accordingly the total income was determined at Rs.87,56,98,093/-. 5. Feeling aggrieved from the order of the AO, the assessee filed appeal before the CIT(A), who after calling remand report from the AO and after going through the rejoinder submitted by the assessee, partly allowed the appeal of the assessee. 6. Feeling aggrieved from the order of the CIT(A), the assessee is before this Tribunal. ....
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....ation made by the lower authorities. 14. Considering the submissions and findings of the lower authorities and acceptance made by the ld. AR, we restrict the addition made under this head ( salaries and wages) the 'disallowance' is restricted to the 20% from the total disallowance of Rs. 45,08,826/-. Accordingly the assessee gets relief of Rs.13,52,648/- and Rs.901765/- is confirmed. Ground No.6 15. This issue is regarding disallowance of insurance expenses amounting to Rs.63,156/-. The AO disallowed 50% of insurance expenses of Rs.1,26,312/- and the ld.AR further submitted that in the remand proceedings the AO noticed that it was paid through banking channel, therefore, the disallowance should not be made by the AO. 16. The ld.DR relied on the order of the AO. 17. Considering the rival submissions and perusing the material on record, in the remand proceedings, the AO fairly accepted that the insurance expenses were paid through banking channels, therefore, the payment should not be doubted . Both the authorities below have accepted that the payments have been for the payment of Insurance expenses , therefore, this issue is allowed. 18. In the result, the ground No.6 is allow....
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....cted the prayer of the assessee. 27. Considering the rival submissions, and findings of the CIT (A) as per his observations the appellant's letter dated 20.03.2019 the complete details were submitted by way of annexure but the same facts were not brought in the remand proceedings. The AO after verifying accepted of Rs. 14,85,63,996/-. Considering the prayer of the assessee we think it fit to send back to the AO for denovo examinations. This ground of appeal is allowed for statistical purposes. 24. GROUND NO. 09. This issue relates to the Unsecured loan 28,27,25,650/- The ld.AR submitted that out of the total addition, a sum of Rs.27,71,25,428/- was opening balance which cannot be added in the impugned assessment year. A sum of Rs.56,00,222/- has been received during the year. The revenue authorities can not question for loan received in earlier years because it was not the subject matter of scrutiny. The AO can ask only for the amount received during the year instead of the entire existing loan amount outstanding during the year. The assessee had provided confirmation from HIPE transport Ventures for an amount of Rs.11,51,27,659/- which has not been doubted. The assessee has rece....
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....onsequential and Ground No. 5 is General." 3. From the above, it can be seen that barring a sum of Rs. 50,000/=, remaining portion of the addition was deleted on the ground that only Rs. 50,000/= were received in the year under consideration and balance was opening balance in the account of the assessee. On that basis, the Tribunal found that the amount of Rs. 9,61,000/= could not have been considered during the year under consideration. We see no error in Tribunal's view. Considering the above noted facts, we deem it fit to sending back to the file of AO for de-novo consideration. If AO finds that there is opening balance of loan as on 01.04.2015, the AO will decide the issue as per the above cited judgement. And in respect of others he will decide the issue in accordance with law. This ground is allowed for statistical purposes. 30. In ground Nos.10,11 & 12, the assessee has contested in regard to not giving benefit of indexation for cost of improvement of Rs.1,40,33,852/- and also not granting principal of natural justice for giving opportunity to the assessee as per section 251 of the I.T.Act. by the CIT(A). During the course of hearing, the ld.AR fairly accepted that t....