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Income Tax Appellate Tribunal, DELHI BENCH ‘B’, NEW DELHI
Before: Sh. H. S. SidhuDr. B. R. R. Kumar
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of ld. CIT (A)-10, New Delhi dated 28.02.2017.
During the course of hearing today, nobody was present on behalf of the assessee, neither any adjournment was sought, hence the matter being decided on merits based on the facts available on record.
Following grounds have been raised by the assessee:
“On the facts and circumstances the ld. CIT (A) has erred by confirming the addition of Rs.9,01,670/-. The ld. CIT (A) has not appreciated the facts applicable to the case.
The ld. CIT (A) has not considered the deduction of payment of interest out of interest income.”
The moot issue pertains to disallowance of interest claimed by the assessee u/s 36(1)(iii) of the Income Tax Act, 1961. The said disallowance
2 Deepak Dhar Gupta has been confirmed by the ld. CIT (A) owing to lack of supporting documents regarding the loan and utilization thereof for the purpose of business. The assessee could not prove the nexus between the receipt of the loan and repayment of any earlier loans. The ld. DR fairly argued that the matter needs to be examined by the revenue and the assessee may be directed to provide necessary evidences before the authorities. We find that interest of justice would be met, if the assessee is given an opportunity to submit the details regarding the loan and utilization thereof before the ld. CIT (A) so that a considered decision can be taken up by the revenue based on the evidences submitted. The assessee is directed to comply to the notices issued by the revenue authorities and we hope that the assessee would not misuse the trust reposed upon him.
In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 07/01/2020.