TMI Blog2014 (4) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act for concealment of income or furnishing of inaccurate particulars of income, in any case, cannot be levied. We delete the penalty confirmed by CIT(A) and levied by AO. This issue of assessee’s appeal is allowed. Disallowance of loss on account of prize winning tickets lost by assessee - Held that:- Assessee before AO has given complete details and this fact is recorded in its ledger. The assessee has even now before us filed complete detail of loss claimed on lost prize winning tickets at ₹ 7,45,645/-. Here, we are in agreement with the findings of CIT(A) because the assessee filed complete particulars of income in its accounts filed along with the return of income and the AO in its penalty order has no where brought o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f disallowance of business loss of ₹ 7,45,645/- inspite of the facts that assessee deliberately failed to establish alleged loss by producing evidence of FIR, filing details of FIR and not claiming for reimbursement of payment made on account of Prize Winning Ticket (PWT) from the Principals . The assesses has raised following ground: 1. For that the penalty imposed on the disallowance of interest paid to bank for payment of interest free advances to other concern is bad in law as well as on fact. 3. Briefly stated facts are that the assessee firm filed its return of income for the relevant assessment year 2006-07 on 30.10.2009, within the due date of filing of return u/s. 139(1) of the Act. This return of income was filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in the audit report. It was also claimed that the complete details of loss on account of prize winning tickets was accounted for and clearly depicted in the accounts and complete details were filed during the course of assessment proceedings. The assessee before the AO stated that it is not a case where AO has detected something which was not before him or not filed by the assessee and in such circumstances this is a bonafide and genuine claim. As far as not filing an appeal before the Appellate Authorities against addition, assessee contended that these were accepted and only on those premise penalty cannot be levied. 4. But the AO levied the penalty and the relevant observations in the penalty order u/s. 271(1)(c) of the Act read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Regarding the disallowance of interest and bank charges of ₹ 32,84,594/-, I find that no appeal was filed by the appellant against the above disallowances. It is also noted that the appellant had made the interest free advances to its related persons/concerns out of borrowed funds. Therefore, the appellant was aware that the above liability was not pertaining to the appellant s business. Therefore, claiming that it was a mere disallowance and that the appellant had disclosed all the facts in respect of borrowers and the advances is not corrected and, therefore, not acceptable. Even though the appellant has disclosed the fact of advances and borrowers in its return of income filed, the Assessing Officer with due diligence, has go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the Balance Sheet that it had given various loans and advances including relatives and sister concerns in totalling to ₹ 6,74,79,352/-. According to AO, the assessee could not establish that these loans and advances were given for business purposes, he made disallowance of interest on bank overdraft at ₹ 23,69,393/- and bank charges at ₹ 9,15,201/- totalling to an amount of ₹ 32,84,594/-. The assessee before AO as well as before CIT(A) and even now before us contended that the major amounts in the name of Akash Chowrasia current account, Apollo International Terminals, Arti Food Products and Valuable Media Pvt. Ltd. about ₹ 5,24,85,158/- pertains to business loss and these are directly related to business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee s appeal is allowed. 7. As regards to the disallowance of loss on account of prize winning tickets lost by assessee. Assessee before AO has given complete details and this fact is recorded in its ledger. The assessee has even now before us filed complete detail of loss claimed on lost prize winning tickets at ₹ 7,45,645/-. Here, we are in agreement with the findings of CIT(A) because the assessee filed complete particulars of income in its accounts filed along with the return of income and the AO in its penalty order has no where brought out that how this is a concealment. According to AO, in his penalty order, clearly says that this is a clear cut disallowance based on the facts submitted by assessee. Once this is merely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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