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2019 (1) TMI 2030 - ITAT BANGALOREApparent mistakes in the impugned Tribunal order - Disallowance of expenditure at 10% of total expenditure on an estimate basis - HELD THAT:- This disallowance was confirmed by CIT (A) on this basis that on the issue of estimated disallowance in the absence of complete details no being available, the estimated disallowance appears to be reasonable and not excessive. When the assessee carried the matter in appeal before the Tribunal, the Tribunal held that the AO has made disallowance of 10% of the total indirect expenses debited in P&L account only whereas as per the Tribunal, the expenses of Rs. 2 Lakhs on account of commission paid, Rs. 14,29,951/- being interest in respect of Sundaram Finance Housing Loan and Rs. 4,19,981/- being Processing Fee in respect of Loan from Sundaram Finance are not allowable at all but the Tribunal is not supposed to increase the disallowance while deciding the appeal of the assessee and therefore, it was held that no inference is called for in the order of CIT(A) on this issue. Hence it is seen that this is the ultimate decision of Tribunal as per the impugned Tribunal order that no inference is called for in the order of CIT (A) and hence, these observations of the Tribunal that the assessee has no business income or that the interest and processing fees of loan are in respect of housing loan etc. do not affect the ultimate decision of the Tribunal that no inference is called for in the order of CIT (A). We find that as per the P&L account of the assessee available assessee has declared income on account of Creditors Written Off, Director Remuneration, Dividend Received, Interest received from Banks, Interest Received – K.G. Enterprises and Profit on Sale of Shares. Hence from these six headings of income credited in the P&L account, it is clear that in the present year, no business income is there. Hence this observation of Tribunal that there is no business income in the present year is not incorrect. Second alleged mistake that the interest paid to Sundaram Finance is not in respect of Housing Loan - We find that the assessee has himself stated in P&L account available on page no. 41 of the paper book that Interest-Sundaram Finance Housing Loan-Rs. 14,29,951/- and therefore, this observation of the Tribunal is also not incorrect when this interest of Rs. 14,29,951/- is in respect of Housing Loan even as per the nomenclature given to it by the assessee himself in P & L Account. Regarding the amount of Rs. 4,19,981/-, the assessee himself stated in the P&L account available on page no. 41 of the paper book that Processing Fee – Loan Sundaram Finance – Rs. 4,19,981/- and since, the only loan from Sundaram Finance is Housing Loan, this observation of the Tribunal is also not incorrect. Hence find no apparent mistake in the Tribunal order.
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