TaxTMI 
TaxTMI 
2022 (1) TMI 624
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....oneous and opposed to law and facts in parts. 2. That the Learned Commissioner of Income Tax (Appeals) has erred in interpreting section 11(2) of the Income Tax Act, 1961 viz a viz the underutilized receipts of Rs. 68,81,725/-. 3.That the Learned Commissioner of Income Tax (Appeals) has grossly erred in taxing a sum of Rs. 9,62,580/- of interest on over draft against FDR as penal interest and mis-utilization of funds. 4. That the appellant craves leave to add, to alter, to amend or vary from the aforesaid grounds of appeal at or before the time of hearing of the said appeal. 2. The ld. AR inviting attention to the impugned order submitted that in the facts of the present case, the addition of Rs. 68,84,176/- made for non utilizat....
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.... in the State. ii) To undertake directly or through government agencies or through private parties the comprehensive development, conservation and renovation of heritage properties in Punjab and up-gradation of the areas around such properties. iii) To undertake directly or through public-private partnership setting up of tourism infrastructure such as conference centers, auditoriums, museums, libraries, hotels, institutes etc; for the promotion of tourism. iv) To promote crafts and skills related to the State of Punjab v) To encourage expression of artists in the mediums of painting, sculpture, theatre, creative writing, music, films, documentaries, multi-media or in any other form. vi) To publish the rich and diverse herita....
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....d to the State of Punjab d. To publish the rich and diverse heritage of Punjab, especially in music, dance, cuisines, costumes etc. 5. Inviting attention to para 4 of the impugned order it was his submission that the facts have been summed up by the ld. Commissioner in the following manner : "4. Ground of Appeal No. 2 agitates the addition on account of underutilized receipts. During the assessment proceedings the Ld AO found that the appellant had utilized Rs. 2,08,35,253 out of the total revenue receipts of Rs. 4,64,58,863 and states that that that the underutilization is in excess of the mandated 15% as per Section 11(2). The AO further states that utilization too has largely gone towards expenditure in the nature of advertisement....
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.... has to be set apart by the assessee by notice in writing vide Form No. 10 and intimation to the AO about the accumulation which was to be utilized within a period of five years. Accordingly, inviting attention to the finding arrived at in page 5 and 6, it was his submission that the CIT(A) has lost sight of this fact. Form No. 10 was filed and it was noticed to be on record by the CIT(A) himself, hence, it was his limited prayer that the issue may be restored for verification on facts, if need be, 7. The ld. Sr.DR relying upon the impugned order submitted that he has no objection in case the issue is restored back for verification. 8. We have heard the rival submissions and perused the material available on record. On a....
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....not the correct picture. It is actually the interest paid on the overdraft facilities / loans against the security of the Boards FDRs. It is not by any stretch of imagination any penal interest but normal interest paid on the overdraft or loan facility taken from the bank. The bank authorities were requested to confirm that the interest paid of Rs. 9,62,580/- in F. Y 2009-10 was normal interest and not penal interest. The bank authorities vide their letter 2018/CR/ADV/dated 15.11.2018 have confirmed that a sum of Rs. 7,75,093.18 was normal interest applied against the loans against the FDRs and in no manner any penal interest was charged. Copy of letter enclosed vide Annexure - 7. It is humbly submitted that the interest and loan account....
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....ission before the Ld AO and has also not produced a correction by the approved auditor in this regards. While it is trite law that an appellant must not suffer from error of an auditor, the remedy to the finding of an auditor in my considered opinion is a certificate from an Auditor to the effect that a wrong qualification has been given. That not being the case, I see no reason to interfere with the order of the Ld AP on this ground of Appeal. The ground of appeal is dismissed. It is ordered accordingly. 13. The ld. Sr.DR relied upon the impugned order. It was his submission that the CIT(A) has not given any finding whether it was interest paid on over draft taken as argued by the ld. AR. Hence, it was his prayer that the facts nee....