Tax Management India.Com

Home Page

Home List
← Previous Next →

2018 (12) TMI 465

Disallowance of expenses - non business expenses - interest payment was claimed on the loan borrowed from Karnataka State Financial Corporation (for short KSFC) in the name of M/s.Hotel Haveli which was being run by M/s. Maruthi Enterprises, for which the appellant was the proprietress - Held that:- Certain fresh material were produced for consideration. However, the lease deed was not produced, either at the assessment stage or at the appeal stage. The sources of receipts as claimed by the assessee were not genuine. That none of the documents demonstrated that the expenses as claimed towards Hotel Haveli were in any manner related to M/s. Maruthi Enterprises. Therefore, in the absence of any material to substantiate, the same the appeal was dismissed. - The material on record would indicate that the assessee could not substantiate her claim and inspite of granting sufficient opportunity, no evidence of material was led-in, in support of her case. Even the few documents that were relied upon did not assist the assessee in any manner whatsoever. Therefore, based on the available material, the findings were recorded. Under these circumstances, we do not find any ground to interfe .....

X X X X X X X

Full Text of the Document

X X X X X X X

48 of the Income tax Act. Therefore, the said contention was negated. We find no good ground to take a different view of the matter. Hence, we are of the considered view that the reopening of the assessment under Section–148 of I.T. Act is valid and in tune with law. - Imposition of interest under Sections 234-A and 234-B - Held that:- In the given facts and circumstances of the case, we do not find any ground to interfere. Moreover, the interest is imposed in terms of the statute. Interpretation has been made in a catena of judgments by this Court as well as the Hon’ble Supreme Court. Hence, we find no error in the imposition of interest under Sections-234-A and 234-B of the Income tax Act. - INCOME TAX APPEAL NOS.72 AND 120 OF 2010 - Dated:- 28-11-2018 - MR. RAVI MALIMATH AND MR. K. NATARAJAN JJ. APPELLANT (BY SRI G. VENKATESH, ADVOCATE FOR SRI.M.LAVA, ADVOCATE) RESPONDENT (BY SRI.JEEVAN J NEERALAGI, ADVOCATE) JUDGMENT RAVI MALIMATH J. The appellant-assessee in ITA No.72 of 2010, is an individual. She filed the return of income for the asst. year 2000-2001, declaring the total income of ₹ 2,16,540/-. The case was taken up for scrutiny. Questionnaire was issued. A reply .....

X X X X X X X

Full Text of the Document

X X X X X X X

e present appeal in ITA No.120 of 2010. By the order dated 12.04.2010, the appeal was admitted to consider the following substantial questions of law: i) Whether the Tribunal is correct in law in holding that the reopening of the assessment under Section - 148 of the Act for the asst. year 2001-02 is valid on the facts and circumstances of the case? ii) Whether the authorities below were justified in law in disallowance of interest payment of ₹ 3,95,570/- for the loan taken from KSFC in the name of M/s.Hotel Haveli and interest on vehicle loan of ₹ 18,244/- for the asst. year 2001-2002 used for the business of the appellant, on the facts and circumstance of the case? iii) Whether the authorities below in law in imposing interest under Section - 234A and 234B of the Act on the facts and circumstances of the case? 5. Sri.G.Venkatesh, learned counsel for the appellant contends that the orders passed by the authorities are erroneous. That the authorities failed to consider the material produced before them. That interest payment was claimed on the loan borrowed from Karnataka State Financial Corporation (for short KSFC) in the name of M/s.Hotel Haveli which was being run by .....

X X X X X X X

Full Text of the Document

X X X X X X X

did not assist the assessee in any manner whatsoever. Therefore, based on the available material, the findings were recorded. Under these circumstances, we do not find any ground to interfere with the order passed by the Tribunal. The order passed by the Tribunal is based on the material available on record. Therefore, no interference is called for. 11. Thereafter, the Tribunal passed a common order affirming the findings of the Assessing Officer, as well as the Commissioner of Income Tax (Appeals). The Tribunal was also of the view that even before the Tribunal, the assessee could not substantiate her claim with any tangible evidence or material. Therefore, having considered the Balance Sheet and the Profit And Loss Account, the findings recorded by both the authorities were confirmed. 12. Consequently, the substantial questions of law are answered in favour of the Revenue and against the assessee. The impugned order of the Tribunal is upheld. 13. ITA NO.120 OF 2010 : So far as the appeal in ITA No.120 of 2010 is concerned, the same pertains to the asst. year 2001-2002. With regard to the income from the property situated at Jayanagar, Bengaluru, the Assessing Officer found that t .....

X X X X X X X

Full Text of the Document

X X X X X X X

filed the return of income belatedly on 30.09.2003. Therefore, the return was treated as a non-est return, which would consequently indicate that certain income had escaped assessment. Therefore, the Assessing Officer being satisfied with the same, issued a notice under Section-148 of the Income tax Act. Therefore, the said contention was negated. We find no good ground to take a different view of the matter. Hence, we are of the considered view that the reopening of the assessment under Section-148 of I.T. Act is valid and in tune with law. 17. The third substantial question of law is with regard to imposition of interest under Sections 234-A and 234-B of the Income tax Act. In the given facts and circumstances of the case, we do not find any ground to interfere. Moreover, the interest is imposed in terms of the statute. Interpretation has been made in a catena of judgments by this Court as well as the Hon ble Supreme Court. Hence, we find no error in the imposition of interest under Sections-234-A and 234-B of the Income tax Act. 18. Under these circumstances, the substantial questions of law are answered in favour of the Revenue and against the assessee. Consequently, the appea .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →