2025 (7) TMI 310

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....Section 147 of the Income Tax Act, 1961 (hereinafter referred to as the "Act"), while the other appeal lies against order of the Ld. CIT(A) confirming the levy of penalty under Section 271(1)(c) of the Act on the addition made to the income of the assessee in the quantum proceedings. 2. Issues involved in both the appeals being interrelated they were taken up together for hearing and are being disposed of by this common order for the sake of convenience. 3. Both the appeals have been marked by the Registry as delayed for filing by 102 days & 72 days respectively. Ld. Counsel for the assessee has filed an application seeking condonation of delay stating that the assessee was unaware of both, the proceedings conducted before the Ld. CIT....

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....7. We shall first deal with the assesses appeal in quantum proceedings in ITA No. 2090/Ahd/24. 8. The grounds raised by the assessee read as under: "01. That the Ld. CIT(A), NFAC has erred both in law and on facts while dismissed the appeal on grounds of limitation and hence it will be set-aside. 02. That the Ld. CIT(A), NFAC has sent notices on E-mail id other than mentioned in Form no. 35, and hence the appeal dismissed on limitation is against the Principal of Natural Justice. 03. That the assessee Ld. CIT(A), NFAC has not decide the appeal on merits and therefore it requires to be set aside. 04. That the Ld. A.O. and CIT(A) both have erred in law and on facts while making addition u/s 40(a)(ia) r.w....

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.... disallowed the interest expenditure claimed by the assessee against the same by invoking the provisions of Section 40(a)(ia) of the Act which Section, he pointed out, related to disallowances to be made while computing income under the head 'Income from business & profession'. He contended that the disallowance clearly was not sustainable in law and pleaded deletion of the same. 11. Ld.DR was unable to controvert the contention of the Ld.Counsel for the assessee as above. 12. We have heard both the parties. It is a fact on record that the AO had invoked the provisions of Section 40(a)(ia) of the Act for disallowing interest expenses incurred by the assessee in the present case amounting to Rs. 15,91,452/-. The said provision of law i....