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Judgment
PER MANISH AGARWAL, AM:
This appeal is filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-1, Gurugaon (‘Ld. CIT(A)’ in short), dated 29.11.2018 in Appeal No. 630/17-18, A.Y. for AY 2015-16.
None appeared on behalf of the assessee. The Ld. Sr. DR supports the order of the lower authorities and requested for the confirmation of the same.
Heard the Ld. Sr. DR. From the perusal of the facts, it is seen that the addition of Rs2.5,00,000/- was made towards unsecured loan received from M/s Arihant AIU-Glass System Pvt. Ltd. and M/s Mysore Finlease Pvt. Ltd. for the reason that assessee has not filed its bank statement and ITR of the lender companies. Further addition of Rs. 2,15,340/- as made towards the notional interest income on interest free advances. Besides this, AO also disallowed the interest on the unsecured loan paid to M/s Mysore Finlease Pvt. Ltd. IN first appeal ld. CIT(A) has deleted the addition towards loan of Rs. 20.00 lacs taken from M/s Mysore Finlease Pvt. Ltd. and further deleted the interest of Rs. 1,87,068/- paid to it. However, as assessee has not able to prove the creditworthiness of the loan taken from M/s Arihant AIU-Glass System Pvt. Ltd. y filing any documents, ld. CIT(A) confirmed the addition of Rs. 5.00 lacs being the loan taken from the said company and further confirmed the payment of interest in such loan. Further, ld. CIT(A) confirmed the addition towards the notional interest as the assessee was not able to prove the nexus between the interest free fund and interest free advances given.
Looking to the entirety of facts it appears that assessee should be provided one more opportunity to file all the necessary documents to establish the creditworthiness of the lender as well source of making interest free advances before the AO. Therefore, in the larger interest of justice, we restored back both the issues to the file of the AO with the directions to the assessee to file all the details before the AO to support of the claims made. The AO is directed to verify the details filed by the assessee and pass the order in accordance with law. With these directions, all the grounds of the appeal taken by the assessee are partly allowed for statistical purposes.
As a result, the appeal of the assessee is partly allowed. Order is pronounced in open court on 05/12/2025.