Premier Finance and Trading Co filed its return of income. AO made additions on account of grant of interest free advances to various parties, out of interest bearing loans, and share application money, and u/s 14A. CIT(A) deleted additions without giving any proper finding. ITAT restored the matter to CIT(A) to decide afresh.
1. Premier Finance and Trading Co filed its return of income
2. AO made addition of Rs. 2,85,12,330 made on account of grant of interest free advances to various parties, out of interest bearing loans.
3. AO made addition of Rs. 92,60, 000 made on account of grant of interest free advances to various parties, out of share application money.
4. AO made addition made u/s 14A of Rs. 1,47,28,503.
5. AO allowed speculation loss of Rs. 2,12,50,205 without appreciating the facts that the onus of proving the transactions as genuine by producing primary documents such as Contract notes etc was on the assessee.
6. CIT(A) deleted the additions, and speculation loss, without giving any proper finding.
On appeal, the ITAT held as under:
7. In absence of any proper discussion or material on record, we are of the opinion that in the interest of justice, the issue raised in ground no. (i) & (ii) are restored back to the file of the CIT(A) to decide them afresh.
8. It is seen that the Ld. CIT(A) has followed the earlier order of the Tribunal for the assessment year 1998-99 to 1999-2000 and therefore, as matter of judicial precedence, we uphold the order of the CIT(A) in directing the AO to work out the disallowance on proportionate basis.
9. We find that Ld. CIT(A) has not discussed the material or evidence to rebut the finding of the AO in a speaking manner, albeit he has accepted the assessee's contention without much discussion vis-à-vis material on record.
10. Therefore, in the interest of justice, we are of the opinion that this matter too should be restored back to the file of the CIT(A) to give proper finding based on material on record and the observation and finding of the AO.
Case Reference - DCI vs Premier Finance and Trading Co. Ltd.
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH "C", MUMBAI
BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER
AND SHRI AMIT SHUKLA, JUDICIAL MEMBER
ITA No. : 6834, 6835, 6836 and 6837/Mum/2012
(Assessment years : 2002-03, 2003-04, 2004-05 and 2005-06)