- (1.) THE present appeal is filed by the assessee against the impugned order dated 13.06.2005, passed by the Income Tax Appellate Tribunal, New Delhi in I.T.A. No.160/Del/2005 for the assessment year 2001 -02.
(2.) ON 12.09.2005, a Co -ordinate Bench has admitted the appeal by passing the following order: - " The substantial question of law arising in the present Income Tax Appeal, in the facts and circumstances of the case, is that whether Income Tax Appellate Tribunal was justified in reversing the order of the Commissioner of Income Tax (A) dated 8.10.2004 in Appeal No. 612/03/04 on the ground that the assessee failed to bring on record the material to draw inference with regard to cash flow statements when no such plea was taken or raised or pressed on behalf of the Department before Assessing Officer or in the appeal itself and the appellant had no opportunity to file the relevant account books to prove the same and whether the Income Tax Appellate Tribunal was justified in reversing the order of Commissioner of Income Tax (A) on a reasoning other than the one given by the Assessing Officer in the order dated 12.2.2004 which was set aside by the Commissioner of Income Tax(A) vide order dated 8.10.2004."
(3.) THE brief facts of the case are that, during the assessment year under consideration, the assessee was engaged in the trading of salt, sugar and bardana etc. The assessee has borrowed the unsecured funds from friends and relatives in the previous years and during the assessment year under consideration, the assessee has paid the interest of Rs. 2,09,066/ -. The A.O. found that the borrowed funds were lying idle in an almirah and was never utilised for the purpose of business. The position of cash lying in the almirah was as under: - Assessment Year - Amount 2000 -01 - Rs. 49,72,716.00/ - 2001 -02 - Rs. 53,50,000.00/ - 2002 -03 - Rs. 54,93,366.00/ - The A.O. disallowed the payment of interest and made the addition which was deleted by the first appellate authority. However, the Tribunal has restored the order of the A.O. Being aggrieved, the assessee has filed the present appeal.;