SOUTHERN GROUP INDUSTRIES P LTD.,CHENNAI vs. ITO, CORP WARD -6(3), CHENNAI

evidence in order to prove that income(which include losses) related to business of selling bullet-proof jackets were offered for taxation in earlier years and thirdly that these loans and advances are inextricably linked to said business of selling bullet-proof jackets carried on by assessee in those years. The aforesaid primary onus is on assessee to get deduction u/s 36(!)(vii) of the 1961 Act read with Section 36(2) of the 1961 Act.

Under these circumstances, we restore this issue to the file of the AO for framing fresh assessment denovo. Needless to say that AO shall grant adequate and proper opportunity to the assessee in accordance with principles of natural justice in accordance with law, in denovo assessment proceedings. The additional evidences/explanations filed by assessee in its defense during de-novo assessment proceedings will be admitted by AO and the issues be adjudicated by AO in denovo assessment proceedings on merits in accordance with law. We order accordingly.

In the result, the appeal filed by assessee in 2013-14 is allowed for statistical purposes.

Order pronounced in Open Court on this 28th day of November, 2019 in Chennai.