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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR
Before: SHRI PAVAN KUMAR GADALE & DR. DIPAK P. RIPOTE
ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the Assessee against the order of ld. Commissioner of Income Tax (Appeals), Bikaner dated 31.12.2019 emanating from the order of Income Tax Officer, Ward-1, Sri Ganganagar under section 143(3) of the Act for A.Y. 2015-16. The grounds of appeal
raised by assessee are as under:- “1. In facts and circumstances, Ld. CIT (A) was not justified in sustaining 10% disallowance of Rs.53,220 made out of aggregate claim of Rs.5,32,209 under five heads of expenses on the grounds that some of vouchers were produced and most of the vouchers being self- made verification of possibilities of personal use or their correctness could not be ascertained but the AO did not point out specific instance despite detailed account copies was filed and claim of expenses was reasonable in light of its nature of business having huge commission receipts of Rs.23,66,620.
2. In facts and circumstances, Ld. CIT (A) was not justified in sustaining addition of Rs.1,82,400 as notional income for non- charging of interest on Rs.15.20 Lac given to M/s Govindam Colonizers Pvt. Ltd. and found to be interest free nor it was justified by disallowance of claim for interest u/s 36(1)(iii) or u/s 37 because no interest bearing funds was used this year for such interest-free advance/loan and adequate interest-free creditors worth Rs.1,25,86,893 also were available.
3. Charging of interest U/s 234D is against law & facts.”
Findings & Analysis 4. Heard the Ld. DR and perused the records. None appeared on behalf of the assessee. However, the assessee had filed the paper book on record. Ground No. 1 5. It is observed from the assessment order that the assessee had claimed following expenditures: