ASHOK AKHERAJ KHIVASARA,PUNE vs. INCOME-TAX OFFICER, WARD - 6(2), PUNE

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.

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.

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

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. *