2024 (11) TMI 1374

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....3A) & 143(3B) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') dated 01.03.2021. The assessee has raised the following grounds of appeal: - "1. The Ld. CIT(A), NFAC has erred and was not just and proper on the facts of the case and in law in confirming the addition of Rs. 5,30,895/- (1,10,985/- + 4,20,000/-) and passing an ex parte order. 2. The Ld. CIT(A), NFAC has erred and was not just and proper on the facts of the case and in law in not considering submission of the "Assessee" which was uploaded on the portal on20/07/2022 whereas the order was passed by LD CIT(A), NFACC on 02/08/2022. 3.1 The addition may be kindly deleted. 3.2 Personal hearing may be granted. 3.3 Any other....

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....e raised by him for rectification of the impugned order is not going through the materials. Therefore, the assessee having left no option but to file present appeal before Tribunal. Since assessee was pursuing alternative remedy before Ld.CIT(A)/NFAC thus, there is no intentional or deliberate delay on the part of assessee rather assessee was going under bona fide advice. The Ld. AR for the assessee submits that delay in filing appeal may kindly be condoned. On merit of the grounds of appeal, the Ld. AR for the assessee submits that while passing assessment order Assessing Officer made addition / disallowance under section 36(1)(iii) of the Act on account of interest free advance by assessee by taking view that assessee has paid interest....

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....he ld Sr DR of the revenue submits that that on disallowance of interest expense assessee has availed loan of Rs. 16,36,297/- on the same time assessee paid advance interest free loan to various persons. Thus, Assessing Officer rightly disallowed the addition of interest. So far as addition on account of household expense is concerned, the assessee having in a big category resides like Surat city and has shown only meagre withdrawal as claim which are not sufficient. The Assessing Officer had estimated household expenses of assessee @ Rs. 40,000/- per month which is very reasonable. 4. I have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. First I will consider the ple....

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....ice was responded by assessee by filing reply dated 12/01/2021. The contents of reply are not recorded by Assessing Officer in his order. Before me, the assessee has filed copy of his reply. In the said reply it is stated that disallowance of interest, if any, is to be made on actual basis and not on hypothetical basis. The assessee has furnished complete details with supporting documents in the form of Annexure-E and details of loan advances in Annexure-E. The assessee also explained that as a routine practice in textile industry, a temporary loan is given to associate concerned as per needs on which neither interest is charged nor interest is given as the interest amount are nominal. The amount of loan is adjusted in debit or against in c....