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2024 (2) TMI 109 - ITAT AHMEDABADPenalty u/s. 270A - under reporting of income in consequence of mis-reporting of income - as per AO assessee failed to establish any nexus between the income earned from other source and interest expenses as explained u/s. 57 - HELD THAT:- While invoking section 270A(9)(c) assessee has given a categorical reply to AO during the assessment proceedings and also submitted that all the details of books of accounts as well as the audit account. Assessee has established the nexus between the interest expenses and interest earned during the financial year 2009-10 from unsecured loans and in fact has given the genuineness, identity and creditworthiness for those parties. The assessee has also submitted notice copy thus, has given all the details and explained the expenses including that of the interest expenditure which was led out or extended wholly and exclusively for purpose of earning income from LIC policy maturity hence director fees from Mila India Pvt. Ltd.. Thus, it cannot be said that the assessee has under-reported in consequence of mis-reported the income of assessee at any point of time. Thus, section 270A(9)(c) of the act will not be attracted in the present case. Decided in favour of assessee.
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