TaxTMI 
TaxTMI 
2026 (7) TMI 1400
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....tset itself, ld. Counsel for the assessee pointed out that, the relevant grounds for adjudication were ground Nos.2 to 5, the remaining grounds are general in nature, or the issue raised therein being consequential to the passing of the assessment order, and therefore not to be adjudicated at this stage. Therefore only Ground No.2-5 is being adjudicated by me. 3. Taking up ground No.2 for hearing, the said ground reads as under:- Ground 2. Rs. 6,56,987/- The Ld. CIT(A) has grossly erred in law as well as on the facts of the case in confirming the addition of Rs. 6,56,987/- made by the Ld. AO on account of disallowance of interest expenses covered u/s. 40A(2)(b) the assessee, however no provisions has been invoked while making th....
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....ee. The said addition was confirmed by the Ld.CIT(A). 5. I have perused the assessment order, and the order of Ld. CIT(A) also. It is not denied that, the assessee had taken unsecured loan from M/s Power Technocrats of Rs. 25 lakhs and paid interest thereon at the rate of 15% amounting to Rs. 3,75,000/-. It is not the case of the AO that the interest paid was not in excess of the fair market value, or that it exceeded the interest, which would ordinarily have paid at arms length. His only case is that, the assessee had also entered into transaction of purchase and sales with the said party, resulting in peak debit/advance of Rs. 69.25 lakhs, which ought to have nullified the unsecured loan taken from the party, and no interest, ought to ....
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.... interest on alleged interest from advance made by the assessee to M/s Power Technocrats by the AO is nothing but notional income added by the AO, which is not allowed as per law, since it is only the real income of the assessee, which is liable to be brought to tax. 9. The assessee has brought to my notice the fact that the loan account of the assessee from M/s Power Technocrats was separate from its current account, wherein all transactions of purchase and sale with the said entity, including transaction of money in the process were recorded. The two set of transactions are completely different, and the AO could not have held that merely because there was a debit balance in the current account, the unsecured loan transaction was neutra....
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....sel for the assessee fairly conceded before me, that the issue stood covered against the assessee by the decision of Hon'ble Apex Court in the case of Checkmate Services Pvt. Ltd. Vs. Commissioner of Income Tax-I reported in [2022] 143 taxmann.com 178 (SC). In view of the same, I see no reason to disagree with the Ld. CIT(A) in confirming the disallowance of Rs. 35,375/- u/s. 36(1)(v)(a) of the Act. 14. Ground of Appeal No.3 is accordingly, dismissed. 15. Ground of appeal No.4 raised by the assessee reads as under:- Ground 4. Rs. 1,00,000/- The Ld. CIT(A) has grosslyerred in law as well as on the facts of the case in confirming the addition of Rs. 1,00,000/- made by the Id. AO on account of disallowance of Software and servic....
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....ssee proving the purchase of software placed before me at paper book Page No.16 and I have found that the bill contains no details of the nature of software purchase, but merely, mentions software services and maintenance for a cost of Rs. 1 lakh. No other evidence has been filed by the assessee, nor I find, the assessee to have explained, the nature of software services availed by it, especially when the computer with the assessee was of miniscule value of Rs. 274/- only. I agree with the lower authorities that the assessee has failed to discharge the onus to prove the genuineness of the expense so incurred. I therefore, see no reason to interfere in the order of Ld. CIT(A), disallowing the software expenses of Rs. 1 lakh. 19. Ground of....
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....re me, the Ld. Counsel for the assessee furnished the copy of the details of unsecured loan taken through Ms. Renu Tater, placed before me at paper book page No.82 to 85 and copy of ledger account of Brokerage placed before me at paper book page No. 77 to 81. 23. I have perused the contents of the same, and I have find the findings of the AO of the brokerage paid being quite huge in relation to loans taken to be correct. I have noted from the details of unsecured loan allegedly facilitated by Ms. Renu Tater, that she facilitated loan of Rs. 5 lakhs in the month of August on 12th August 2013, however, from the copy of the ledger account of commission paid to Ms. Renu Tater, I find that she was paid commission on 5 occasions in the month o....