DCIT, CIRCLE-3(2), HYDERABAD, HYDERABAD vs. SRI VASAVI INDUSTRIES LIMITED, HYDERABAD, HYDERABAD

For Revenue: Sri Rohit Mujumdar, D.R. For Assessee: None Date of Hearing : 17/06/2021 Date of Pronouncement : 12 /07/2021 O R D E R PER S.S. GODARA, J.M. These Revenue’s appeals for A.Y. 2002-03 and 2003-04 arise against the CIT(A)-3 Hyderabad’s order dated 08.12.2016 passed in case nos. 1371 & 1372/2014-15 involving proceedings u/s 143(3) r.w.s. 254 of the Income Tax Act, 1961 [ in short ‘the Act’]. Case called twice. None appears at assessee’s behest. It is accordingly proceeded ex parte. The Revenue has raised the following identical substantive grounds in the instant appeal.

& 376/Hyd/2017 AYs 2002-03 & 2003-04 Sri Vasavi Industries Ltd.

2. The Ld..CIT(A) erred in directing the AO to verify the bank account of the assessee to examine the allowability of interest disallowed by the AO u/s 14A of the Act. 3, The Ld. CIT(A) erred in not considering the fact that the principle of swap investment does not apply to the case of the assessee as there is no merger/acquisition of the companies took place during the year under consideration. 4. The Ld. CIT(A) erred in not considering the fact the Assessing Officer rightly disallowed the interest u/s 14A , in view of the fact that the assessee company could not prove the genuineness of its claim before the AO during the re- assessment proceedings, made consequent to the directions of Hon'ble ITAT. 5. The Ld.CIT(A) ought to have upheld the disallowance made by the AO in the circumstances that the assessee could not substantiate its claim even during the appellate proceedings, and erred in directing the AO to verify once again thereby providing multiple opportunities to the assessee. 6. Any other ground that may be urged at the time of hearing.