KAWARILAL,CHENNAI vs. ACIT,DC/AC,CENTRAL -1(2)CIRCLE, CHENNAI

Aforesaid appeals by assessee for captioned Assessment Years (AY) arises out of the impugned common order passed by learned Commissioner of Income Tax (Appeals)-18, Chennai, [CIT(A)] dated 14- 12-2022 in the matter of separate assessments framed by Ld. AO. appeals are adjudicated as under.

The assessee being resident individual is stated to be engaged in pawn broking business under proprietorship concern namely M/s K. Madanlal. An assessment was framed for AY 2017-18 u/s 153C consequent to search action u/s 132 in the case of Lotus-G Square group on 29.01.2019. The search action led to certain incriminating material. The statement of the assessee was also recorded. Based on the same, impugned additions were made. 3. In the recorded statement, the assessee admitted that it was collecting interest @24% from its customers but it was accounting interest @16% only. Based on admission as well as loose sheets, Ld. AO computed additional unaccounted interest @8% and made aggregate additions of Rs.40.84 Lacs for AYs 2017-18 to 2019-20. The same has been tabulated in para 4.2 of the assessment order. During assessment proceedings, the assessee assailed the same on the ground that normal interest charged was only 16% and only in few cases, interest of 24% was charged based on securities offered. However, rejecting the same, Ld. AO made impugned additions in the hands of the assessee in all the three years. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. 4. From the facts, it emerges that the impugned additions have been made on the basis of loose sheets as well as the admission made by the assessee during the course of search proceedings. Even during the course of assessment proceedings, this fact has been admitted by the assessee. However, it is another fact that the assessee has not earned uniform interest rate on all the debtors. It was submitted by the assessee that only in few cases rate of 24% was charged based on securities offered. Considering the facts of the case, we direct Ld. AO to estimate the interest rate @20% and re-compute the impugned additions, in all the three years. The corresponding grounds raised