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2019 (1) TMI 1656

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..... ee with the reasons mentioned by the revenue authorities especially the Ld. First Appellate Authority for confirming the addition of ₹ 20,38,472/- on account of interest on loan of ₹ 1,11,73,554/-. Hence, no interference is called for in the well reasoned order of the Ld. CIT(A) - Decided against assessee Credit card payment - nature of expenditure - revenue or capital expenditure - HELD THAT:- 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. In my view and keeping in view of the o .....

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..... he Registry to issue notice by RPAD for hearing on 06.11.2019. On 06.11.2019 when the matter came up for hearing, again none appeared on behalf of the Assessee nor filed any application for adjournment. Hence, I am of the view that no useful purpose would be served to issue notice again and again to the assessee on the address given by the assessee in the present appeal. Secondly, the assessee has also not intimated any new address to the Tribunal. In view of facts and circumstances of the case and in the interest of justice, I am deciding the appeal of the assessee exparte, after perusing the records and hearing the Ld. DR. 3. The brief facts of the case are that assessee filed his return of income at ₹ 12,01,350/- on 28.3.2014. The .....

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..... ee submitted his letter dated 10.8.2015 and stated that assessee had been using ICICI bank credit card which was being shown in his balance sheet but from this year the assessee has shown this in his capital account and has credited ₹ 4,10,447/- in his capital account. The AO was of the view that assessee has not credited ₹ 5,90,175/ to the profit and loss account, though it was the part of his balance sheet in earlier years, hence, ₹ 5,90,175/- was added in the hands of the assessee and initiated the penalty of ₹ 271(1)© of the Act. 3.3 AO also found that the assessee has shown Loan (Liability) of ₹ 1,11,73,554/- against which he has claimed bank interest of ₹ 20,38,472/- and assessee has further gi .....

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..... dated 1.6.2015 and 15.7.2015 does not pertain to the year under consideration. Assessee has claimed depreciation of ₹ 89,808/- on the same @60%. So, the expenses of ₹ 1,49,680/- as well as depreciation of ₹ 89,808/- on these two computers was disallowed and an amount of ₹ 2,39,488/- was added back to the income of the assessee. AO also initiated the penalty proceedings u/s. 271(1)© of the Act. In the end, the AO also initiated the penalty u/s. 271B of the Act for violation of Section 44AB of the Act and completed the assessment u/s. 143(3) of the Act at net taxable income of ₹ 48,00,212/- vide order dated 29.01.2016. Aggrieved with the assessment order, assessee appeal before the Ld. CIT(A), who vide his i .....

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..... nt is concerned, after going through the orders passed by the revenue authorities and after hearing the Ld. DR, I am of the view that 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. In my view and keeping in view of the orders of the revenue authorities, especially the impugned order passed by the Ld. First Appellate Authority, I am of the considered view that the AO has rightly made the addition in dispute and Ld. CIT(A) has confirmed the same on the basis of the documentary evidences produc .....

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