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2019 (11) TMI 1135 - ITAT DELHIPenalty u/s 271(1)(c) - unexplained cash credit u/s. 68 - payment of interest to bank which the assessee has mentioned in the profit and loss account - HELD THAT:- The revenue authorities have noticed that a loan (liability) against which the assessee has claimed interest and the Assessee has further given interest free loan to his daughter Ms. Mehak Gandhi meaning thereby that assessee has claimed interest expenses of borrowed capitals and by giving interest free advances to his daughter. In my view this not for business purposes. Assessee has claimed before the revenue authorities by not filing any documentary evidence, therefore, fully agree with the reasons mentioned by the revenue authorities especially the Ld. First Appellate Authority for confirming the addition on account of interest on loan. Hence, no interference is called for in the well reasoned order of the Ld. CIT(A) on the issue in dispute, therefore, I uphold the finding of the Ld. CIT(A) on the issue in dispute and reject the ground raised by the assessee. Addition on account of credit card payment - Expenses on ICICI Credit Card and the credit facility from Phoenix ARC Pvt. Ltd. was transferred by the assessee to his capital account. Since the assessee has himself capitalized these amounts by transferring the same to his capital account without crediting the same in the profit and loss account. Impugned order passed by the FAA AO has rightly made the addition in dispute and Ld. CIT(A) has confirmed the same on the basis of the documentary evidences produced by the assessee. Therefore, the finding of the Ld. CIT(A) on this issue is upheld and accordingly the ground raised by the assessee is rejected. Accordingly, this appeal of the assessee is dismissed.
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