TaxTMI 
TaxTMI 
2022 (1) TMI 627
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....d. 3. Ground No. 2 relates to the disallowance of Rs. 6,05,150/- made by the Assessing Officer. 4. Briefly stated, the facts relating to this grievance of the assessee are that during the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has claimed deduction for interest on borrowed funds under section 24(b) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'] amounting to Rs. 6,05,150/-. The assessee was asked to furnish documentary evidence with regard to the loan taken as the same was used for the acquisition of the said building situated at Jasola, Okhla industrial area, New Delhi. 5. The assessee explained that the loan has been taken from M/s Perfect Turner for the pur....
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....t cash has been shown to be withdrawn from the bank as under: Sr. No. Amount [Rs.] 1. 09/04/2010 2,50,000/- 2. 08/11/2010 2,00,000/- 3. 01/-3/2011 2,52,000/- Total 7,02,000/- 12. The assessee was asked to explain the above introduction of cash entries in its books of account. 13. The assessee was asked to explain the above introduction of cash entries in its books of account. The assessee explained that the said amounts were withdrawals from the bank. 14. Submissions of the assessee were verified from the bank statement but from the perusal of the bank statement, the Assessing Officer found that no such cash withdrawals were made from the bank on the date of introduction of cash in the books of account. The AO, acco....
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....he balance sheet of the assessee, the Assessing Officer found that in Schedule 4 of Fixed Assets, the assessee has shown several properties and has claimed depreciation amounting to Rs. 22,09,066/-. The assessee was asked to justify its claim of depreciation. 20. The assessee explained that it is engaged in the business of hotelier and has paid rent in respect of the premises at Raj Niwas Palace, Dhoulpur. The said lease rent was paid to Shri Dushyant Singh, HUF. 21. The Assessing Officer was of the opinion that the assessee is claiming deduction on lease rent as expenditure and is also claiming depreciation on the said building. The Assessing Officer, accordingly, disallowed the claim of depreciation. 22. The ld. CIT(A) confirmed the di....
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....e assessee and confirmed the disallowance. 26. Before us, the ld. counsel for the assessee stated that only payment made on account of M/s Pest Control was subject to TDS under section 194C of the Act and on which tax has been deducted at source and balance amount is petty expenditure incurred on day to day maintenance of the building. 27. On the other hand, the ld. DR supported the findings of the AO/CITA. 28. We have carefully considered the order authorities below. It Is true that on payment of pest control expenses, the assessee has deducted tax at source and has fulfilled the conditions laid down in section 194C of the Act. To this extent no disallowance should be made. 29. In respect of balance, no details of day to day expenditur....