2026 (9) TMI 1304

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....rounds of appeal raised by the assessee are as under: "1. On the facts and circumstance of the case and in law, the Ld. CIT(A) erred in upholding the penalty order passed u/s section 271(1)(c) of Act. 2 On the facts and in law, the Ld. CIT(A) erred in confirming the penalty u/s 271(1)(c) on disallowance of interest u/s 36(1)(iii) of Rs. 37,98,236/-, without appreciating that the disallowance arose merely from a difference of opinion and not from concealment of income or furnishing of inaccurate particulars. 3. On the facts and circumstance of the case, the Ld. CIT(A) erred in not appreciating that all particulars of borrowings and advances, including interest details, were fully disclosed in the audited accounts a....

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....gnoring that the Ld. Assessing Officer failed to specify the exact charge whether for concealment of income or furnishing of inaccurate particulars in the notice issued under section 274, thereby vitiating the proceedings. 8. The above grounds of appeal are without prejudice to each other. 9. The appellant craves the leave to add, amend or alter all or any of the grounds of appeal." 3. Facts of the case, in brief, are that the assessee has electronically filed return of income for the AY 2011-12 on 30.09.2011 declaring total income of Rs. 27,19,60,180/-. The assessee filed revised return of income for AY 2011-12 on 29.03.2012 declaring total income at Rs. 27,19,35,607/-. The AO disallowed proportionate interest u/s 36(1....

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....and orders of CIT(A) and ITAT against the quantum addition. The Ld. AR submitted that notice issued along with the assessment order does not specify the basis and default for which proceedings were initiated against the appellant. He has enclosed copy of the notice at page 14 of the PB. Hence, the notice was not bad in law. He relied on the decision of the Jurisdictional High Court in case of Mohd. Farhan A. Shaikh vs. DCIT and ors. (434 ITR 1). He also submitted that disallowance of various expenses including interest on basis of interpretation of law on facts cannot be treated as concealment of income of furnishing law inaccurate particulars of the income. For this he relied on the decision of the Hon'ble Supreme Court in case of CIT vs. ....