TaxTMI 
TaxTMI 
2024 (10) TMI 775
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....ter having not been gone into, necessarily the matter has to be remanded to the Tribunal to take a decision on merit, as we have held that assessment cannot be stated to be invalid in the eye of law. Accordingly, the matter is remanded to the Tribunal to take a decision on merits. The Hon'ble Court has thus directed the Tribunal to take a decision on merits since the order could not be held to be invalid. Pursuant to these directions, we proceed for adjudication of cross-appeals on merits as directed by Hon'ble Court. 1.2 The grounds raised by the assessee read as under. 1. The learned Commissioner of Income tax (Appeals)-III, Chennai, has erred in confirming the disallowance of Rs. 4,00,000 made by the Assessing Officer in respect of the expenditure incurred by the appellant on stamp charges. 2. The learned Commissioner of Income tax (Appeals)-III has erred in sustaining the disallowance of expenditure on brokerage to the tune of Rs. 71,48,050/- out of Rs. 72,93,929/- made by the Assessing Officer. 3. The learned Commissioner of Income tax (Appeals) erred in confirming the disallowance of service charges of Rs. 4,64,560/- made by the Assessing Officer. 4. The learned Com....
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....om 1.4.2005, but the assessee has not produced the vouchers relating to these payments. The assessee furnished written submissions before the CIT(A)-III without furnishing any evidences in support of his claim. The assessee was asked to furnish the evidences in support of the written submissions. No response from the assessee with regard to the evidences. 5. The Learned Commissioner of Income-tax (Appeals) erred in deleting the disallowance of professional charges and service charges made by the Assessing Officer. 5.1. The Learned Commissioner of Income-tax (Appeals) failed to note that the assessee could not furnish details of payments of Professional charges of Rs. 30,00,000/- since the said transactions neither reflected in the bank statements nor produced evidences in support of the transactions. 6. The Learned Commissioner of Income-tax (Appeals) has erred in deleting the disallowance of investments made u/s. 69B of Rs. 21,75,00,493/-. 6.1. The Learned Commissioner of Income-tax (Appeals) failed to note that the assessee could not furnish any evidences and also there is no response from the parties concerned in spite of this office letters u/s. 133(6). 7. The Learned....
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....to be raised at this point of time. The Ld. AR stated that as per directions of Hon'ble High Court, the appeals are now fixed only for merits of the additions. The Ld. AR further submitted that there was no violation of Rule 46A as stated by the revenue. 1.6 Having heard rival submissions and upon perusal of case records and remand reports of Ld. AO as placed on record, our adjudication would be as under. Assessment Proceedings 2.1 The assessee declared loss of Rs. 78.42 Lacs. Initially, the return was processed u/s 143(1). However, the case was reopened and an assessment was framed u/s 143(3) r.w.s. 147 of the Act on 31-12-2007 making certain addition in the hands of the assessee. Upon further appeal, Ld. CIT(A) granted partial relief which has led to present cross appeals before us. 2.2 The issues / additions which form subject matter of cross-appeals are as under: - No. Particulars Amount (Rs.) 1. Addition of Increase in share capital 9999000 2 Addition of Unsecured loan 36074309 3 Disallowance of Interest expenditure 4284140 4 Disallowance of Service charges 3299560 5 Addition of Investments 217500493 6 Disallowance of Electronic Transfer charges 7693....
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....a Chandrashekaran which was similarly stated to be given by her husband. Going by the statement of Smt. Nirmala Chandrasekaran, the said amount was also added to the income of the assessee. 2.5 Disallowance of interest expenditure The assessee claimed interest payment of Rs. 42.94 Lacs which was disallowed on the ground that the assessee could not establish that the same was paid within the due date of filing of return of income. 2.6 Service charges The assessee paid service charges of Rs. 30 Lacs out of which the assessee furnished evidences for Rs. 1.65 Lacs. The cheque entry of Rs. 28.35 Lacs was claimed to be paid was not traceable in the bank statement. Therefore, the same was disallowed. Another service charge of Rs. 4.64 Lacs as claimed by the assessee was also disallowed for want of evidences. 2.7 Addition of Investments The assessee made investments of Rs. 2490 Lacs. The assessee could not furnish requisite details for investment of Rs. 2175 Lacs. Therefore, these investments were held to be not explained satisfactorily and not fully disclosed as per section 69B and added to the income of the assessee. 2.8 Disallowance of Electronic Transfer Charges The assessee pa....
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....rightly been considered by Ld. CIT(A). The additional grounds of appeal as filed by the revenue, even if admitted, are liable to be dismissed. We order so. 3.4 Having said so, it could be seen that the impugned order is based on detailed findings given by Ld. AO in remand report dated 27-04-2009. The Ld. CIT(A), in paras 4.3 to 4.5 of impugned order, noted that the assessee furnished details of increase in share capital and unsecured loans. The same were journal entries and the explanation furnished by the assessee was held to be satisfactorily by Ld.AO. Considering the same, the Ld. CIT(A) deleted the addition of increase in share capital and unsecured loans. The same form part of subject matter of revenue's appeal. Since the above transactions are mere journal entries and the assessee has furnished satisfactory explanation thereof during remand proceedings to the satisfaction of Ld. AO, the adjudication of Ld. CIT(A) could not be faulted with. The corresponding grounds raised by the revenue stands dismissed. 3.5 Similarly, the assessee demonstrated that the interest of Rs. 42.94 Lacs was duly paid and requisite particulars in this regard were duly furnished. The same were acce....