TaxTMI 
TaxTMI 
2019 (3) TMI 70
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....ade in the Books of Accounts. Assessee claimed interest expenses of Rs..1,33,56,280/- on the loan utilized towards purchase of these flats, as business expenses in the Books of Accounts and in the return of income. During the Assessment Year under consideration assessee declared NIL income from operations thereby incurring loss of Rs..1,34,94,930/- including the interest expenses of Rs..1,33,56,280/-. However, the assessee filed belated return of income and thereby it did not carryforward the loss incurred during the year under consideration for the subsequent years. 3. The assessment was completed u/s 143(3) of the Act on 25.03.2015 determining the income of the assessee at Rs..1,33,56,280/-. In the course of the assessment proceedings the Assessing Officer disallowed the interest expenses u/s. 36(1)(iii) of the Act holding that the assessee had not put to use the said premises for business purposes and therefore claim for interest expenses on account of purchase of the properties is not allowable. Assessee though not filed any appeal against the order of the Assessing Officer which was passed u/s. 143(3) of the Act, however, filed a rectification application u/s. 154 of the Act....
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.... the Jaipur Bench of ITAT in the case of Aditya Propcon Pvt. Ltd., in ITA.No. 762/JP/2012 dated 31.01.2014. 7. Ld. Counsel for the assessee further submits that during the year assessee has filed a belated return of income, assessee was aware that no carryforward of loss is permissible in belated return of income and hence it had filed a loss return without carrying forward the loss to the subsequent years. Therefore, it is submitted that there is no taxes ought to be evaded by the assessee as the assessee has not carried forward loss to the subsequent years. Learned Counsel for the assessee submitted that, since no loss is being carried forward by the assessee the benefit of losses of the current year will not be available in the subsequent years to the assessee, and accordingly there is no loss to the Revenue. He placed reliance on the decision of the Hon'ble Bombay High Court in the case of First Data (India) Pvt. Ltd [384 ITR 260]. Referring to the said decision the Ld. Counsel for the assessee submitted that this decision is directly applicable to the facts of the assessee's case wherein the Hon'ble High Court setting aside the penalty order u/s. 271(1)(c) of the Act....
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....here is complete disclosure of the details of the transactions. This aspect of the matter has been considered by the Ld.CIT(A) and deleted the disallowance following the decision of the Hon'ble Supreme Court in the case of CIT v. Reliance Petroproducts Pvt. Ltd., (supra) observing as under: - "5. I have carefully considered the facts of the 'case and the submissions of the Ld. AR. I have also gone through the assessment order u/s. 143(3) and the penalty order u/s.271(1)(c) passed by the AO. I have also gone through the decisions relied upon by the AO and Ld. AR. The AO has levied penalty on the ground that the flat purchased by the assessee had not been put to use for business purpose for the entire previous year relevant to the subject assessment year. However, it had claimed interest expense towards purchase of the said flat. Thus, it had not only concealed the particulars of its income but had also furnished inaccurate particulars of income. The Ld. AR, on the other hand, submitted that appellant has disclosed complete details in respect of the said interest expenses of Rs. 1,33,56,280/- debited to the profit and loss account. Hence, concealment of income or furnishing....
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.... to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to computation of his total income have been disclosed by him, then, the amount added or disallowed in computing the total income of such person as result thereof shall, for the purposes of clause (c) of this sub-section, be deemed to represent the income in respect of which the particulars have been concealed. 5.2 Let us now examine the above facts in the light of the various decisions including the decision of the Hon'ble Supreme Court in the case of Reliance Petro Products Pvt. Ltd. (supra). The Hon'ble Court has considered the-nature of default which would constitute concealment of particulars of income or furnishing of inaccurate particulars, in the context of the provisions of section 271(1)(c) of the Act. After analyzing its own decisions in the case of Dilip N. Shroff v. JCIT (291 ITR 519), Union of India v. Dharmendra Textiles (306 ITR 277), Union of India v. Rajasthan Spinning and Weaving Mills (224 CTR 1) and CIT v. Atul Mohan Jindal (317 ITR 1), the Hon'ble Court stated as under:- "The basic reasons why decision in Dilip N. Sh....