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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R.S. SYAL
PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(A)-13, Pune on 07-05-2018 in relation to the assessment year 2012-13.
The only issue raised is against the confirmation of disallowance of interest of Rs.8,67,205/-.
The facts apropos this issue are that the assessee paid interest to various related persons @24% which was found by the Assessing Officer (AO) to be high.
2 ITA No.1201/PUN/2018 Shri Ashok Akheraj Khivasara
Applying the provisions of section 40A(2), the AO
restricted the allowability of interest at 18%, thereby
making an addition for the remaining 6% which came at
Rs.8,67,205/-. The ld. CIT(A) did not allow the assessee’s
stand, against which the appeal has been preferred before
the Tribunal.
I have heard both the sides and gone through the
relevant material on record. It is noticed that the ld.
CIT(A) did not allow the assessee’s stand by noticing in
the penultimate para of his order that “there was no
evidence on the part of the appellant to show that he had
earned interest at 24%. It remains a mere averment on
his part. The appellant has not even filed copies of his
balance sheet, P&L a/c. and computation to show that he
has indeed earned interest let alone the rate of interest.”
Page 33 onwards of the paper book is a copy of the letter
dated 03-08-2017 addressed by the assessee to the
CIT(A). On page 34, the assessee has categorically
mentioned that he recovered interest @24% per annum
and also paid interest @24%. There is some reference to
3 ITA No.1201/PUN/2018 Shri Ashok Akheraj Khivasara
the ledger extracts of some persons, namely, Avior
Techno Fab Pvt. Ltd., Dharmshi Signature and Gandhi
Bafna, from whom the assessee received interest @24%.
It is thus apparent from the above letter written by the
assessee to the ld. CIT(A) that he gave instances in which
interest @24% was earned, which position has not been
properly recorded in the impugned order. The ld. AR
further claimed that the assessee was consistently paying
interest @24% in the preceding years which has been
accepted as such. In view of the fact that these two
relevant facts, namely, receipt of interest @24% during
the year from certain persons and payment of interest
@24% in preceding years, have not been properly taken
into consideration by the authorities before deciding the
issue, I am of the considered opinion that the ends of
justice would meet adequately if the impugned order on
this score is set-aside and the matter is remitted to the file
of AO. I order accordingly and direct him to decide this
issue afresh in the light of above observations.
4 ITA No.1201/PUN/2018 Shri Ashok Akheraj Khivasara
In the result, the appeal is allowed for statistical
purposes.
Order pronounced in the Open Court on 20th March, 2019.
Sd/- (R.S.SYAL) उपा�य� उपा�य�/ VICE PRESIDENT उपा�य� उपा�य�
पुणे Pune; �दनांक Dated : 20th March, 2019 सतीश
देश क� क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत / Copy of the Order is forwarded to : अ�ेिषत आदेश देश देश अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / 3. The CIT (Appeals)-7, Pune 4. The Pr. CIT-6, Pune िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “SMC” / 5. DR ‘SMC’, ITAT, Pune; गाड� फाईल / Guard file. 6. // True copy // आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, आदेशानुसार
// True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune
ITA No.1201/PUN/2018 Shri Ashok Akheraj Khivasara
Date 1. Draft dictated on 20-03-2019 Sr.PS 2. Draft placed before author 20-03-2019 Sr.PS 3. Draft proposed & placed JM before the second member 4. Draft discussed/approved JM by Second Member. 5. Approved Draft comes to Sr.PS the Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *