TaxTMI 
TaxTMI 
2026 (8) TMI 950
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.... & Order No: ITBA/NFAC/S/250/2025-26/1081201889(1) arising out of the assessment order dated 02.02.2021 u/s 143(3) r.w.s 144(3A) and 143(3B) the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by National e-assessment Centre, for AY: 2018-19. 2. Heard and perused the records. The assessee's return was picked up for scrutiny assessment and based upon queries raised AO found that in Form 10B transactions with persons specified u/s 13(3) of the Act are mentioned which includes following payments: Sr. No. Details Amount (in Rs. ) Rate of interest charged Nature of security if any 1. Divine Realbuild Pvt. Ltd. 37,36,900 0 NIL 2. Divine International 20,65,00,515 8 NIL 3. Di....
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.... findings in para 10.2 to 11.3: "10.2 During the course of appellate proceedings, it is submitted that addition of the amount of interest not charged or less charges Rs. 1,64,90,055/- u/s. 40A(2)(a) is also an apparent mistake as the said section is applicable while computing income from business or profession which is not the case of assessee as computation sheet enclosed with the assessment order by ld. AA is showing income from business or profession as Zero. 10.3 I have gone through the assessment order and the submissions of the appellant. The AO observed that the assessee society has given the loan and advances to the concerns in which specified persons of the trust has substantial interest. No interest has been char....
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....90055/- is upheld. Ground No. 5 of this appeal is dismissed. 11.0 Ground No. 6 of the appeal is denial of the donations of Rs. 8091000/- for non furnishing of certificate u/s. 80G which was not called for during the scrutiny proceedings. 11.1 As per the assessment order, since the assessee is assessed as AOP and the donation of Rs. 80,91,000/- is not allowable as expenses expenditure u/s. 37 of the I T Act, 1961 and no certificate of 80G of the parties to whom such donation has been paid. 11.2 During the year assessee has paid scholarship and donations. The donations are given only Rs. 72,90,000/- and not Rs. 80,91,000/- and therefore addition made need to be corrected. Copy of the registration certificates u/s. 1....
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.... circumstances of the case, the notice issued under section 143(2) of the Income Tax Act, 1961 is not in specified format and any defect therein goes to the root of assessment proceedings and therefore, the assessment framed in the case of assessee is bad in law and liable to be quashed. 4) That on the facts of the case and in law, Ld. CIT(A) erred in sustaining the action of Ld. AO of concluding that the appellant committed violation within the meaning of the provision of section 13(1)(c), 13(2)(c),13(2)(g) read with 13(3) of the Income Tax Act. 5) That on facts of the case and in law, Ld. CIT(A) erred in sustaining the action of the Ld. AO in erred in denying the benefit section 11 and 12 to the entire income of the appe....
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....ore ld. Tax authorities was that vide an agreement dated 08.03.2013 copy of which is available at page No. 36-42, of the paper book assessee had engaged in Devine Realbuild Pvt. Ltd. to execute a work of construction of the DSPSR College building and the advance was given in ordinary course of carrying out of construction activity. The project was completed in F.Y. 2018-19 and completion cum occupation of certificate was received in the year 2020 from the North Delhi Municipal Corporation. Now, going through the impugned order we find that there is no allegation or material to demonstrate that any specified person has derived any personal benefit from the said advance. Specially that contract was over priced or not at arms's length. 6. T....
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....assessee should have charged interest amounting to Rs. 4,67,112/- on outstanding balance of Rs. 37,36,900/- from M/s Divine Real Build Pvt. Ltd. and Rs. 60,53,279/- on outstanding balance of Rs. 4,84,26,233/- from M/s Divine Education Trust and Rs. 88,100/- from outstanding balance of Rs. 7,04,874/- from M/s Dr. B.P. Singh Public Charitable Trust and accordingly had benefitted the related parties by total interest of Rs. 1,64,90,055/-. 8. However, the provision of Section 40A(2)(a) of the Act makes taxable by way of disallowance expenditure incurred in the course of business or profession where such expenditure is paid to related parties and is found to be excessive or unreasonable. In the present case the assessee has incurred expenditu....