2019 (5) TMI 1267

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....sessee in the grounds of appeal. 3. Facts of the case, in brief, are that the assessee is a Private Limited Company and filed its return of income on 29th October, 2007 declaring total income of Rs. 1,62,300/- which was processed u/s 143(1). Subsequently, the case of the assessee was reopened by issue of notice u/s 147 and the assessment was completed u/s 147/143 (3) on a total income of Rs. 15,76,510/-, after making addition of Rs. 10,75,539/- on account of deductions claimed u/s 24(b) and amount of Rs. 1,60,104/- for undisclosed amount of income from other sources. The assessee preferred appeal before the Ld.CIT(A) who sustained an addition of Rs. 3,63,584/- out of the above additions. Thereafter, the assessee filed application u/s 154....

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.... the Act can be levied. Thus, the AO is directed to re-compute the amount of penalty @ 100% of tax sought to be evaded on the stated amount of Rs. 3,63,384/- as against the assessed income of Rs. 8,62,157/-. 3.5 Before me, the appellant has submitted that no penalty can be levied on the addition, since the addition sustained by the CIT(A)- 13, Delhi is on estimate basis. The appellant claimed that the AO has erred in computing the amount of disallowance in the hands of the appellant. 3.6 On considering the submissions of the appellant, I do not find any merit in it. The CIT(A), vide order dt 08,11,2016, had very well concluded that the allowable interest, under the provisions of Sec 24(b) is Rs. 217663 as against the claim....

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.... 7. The Ld. DR relied upon the order of the CIT(A) and A.O. 8. I have heard the rival arguments made by both the sides and considered the various decisions relied by the Ld. Counsel for the assessee. It is the submission of the Ld. Counsel for the assessee that full particulars were given and there was no concealment of any particulars of income and disallowance of interest u/s 24(b) is mainly on account of estimated disallowance. 9. I find some force in the arguments of the Ld. Counsel for the assessee. As per the return of income and as per the assessment order, there is no difference in the rent receipt and the municipals tax paid but only difference is on account of interest. The expenses u/s 24(a)/ 24(b) as per the return of inc....