2025 (9) TMI 17

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....e of hearing, none appeared on behalf of the assessee when the case was called neither any application for seeking adjournment has been filed which shows that assessee is not interested in pursuing the present appeal, moreover today is the 8th opportunity of hearing, therefore we see no justification in further adjourning the case, therefore assessee is proceeded ex-parte. On the contrary, the Ld. DR present in the court is ready with the arguments, therefore we have decided to proceed with the hearing of the case exparte. Ground No. 1. Raised by the appellant is as follows: "1. The Ld. AO has erred in law as well as the facts in making disallowance of interest of Rs. 6,16,473/-, in respect of bank overdraft u/s 57 of the ....

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....information, the plea of the Assessee is rejected. The appellant has also relied on certain case laws, but they are distinguishable on facts from the appellant's case. Accordingly, the disallowance of interest of Rs. 6,16,473/- made by the AO is hereby confirmed. The ground of appeal No.1 is thus, dismissed. 4. Ld. DR relied upon the order passed by the revenue authorities. Even before us none appeared on behalf of the assessee to rebut or controvert the lawful findings so recorded by the Ld. CIT(A) and the assessee has miserably failed to establish a nexus between the interest income out go and the interest income earned. No submissions or details were filed to demonstrate as to how these funds were utilized and establish a nexus be....

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....rdingly, the disallowance of interest of Rs. 17,65,205/- @ 10% made by the AO is hereby confirmed. The ground of appeal No.2 and 3 are thus, dismissed. 6. Ld.DR relied upon the order passed by the revenue authorities. Even before us none appeared on behalf of the assessee to controvert or rebut the findings so recorded by Ld. CIT(A) and even no documentary evidences or submissions are filed before us. The assessee himself has admitted before the revenue authorities that the interest bearing funds withdrawn have been used to payoff the OD account. The only argument raised by the assessee before the revenue authorities was that the funds have been sourced from Vatica Enterprises by the firm and an interest @ 6% has already been paid by fir....