9911796707
TMI Blog2023 (4) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income Tax Act, 1961 ["Act" in short]. 2. The appeal filed by the assessee is delayed by 52 days in filing the appeal before the Tribunal. The assessee has filed a petition for condonation of delay in the form of an affidavit and the submissions are reproduced as under: "1) That we received the order under section 250 of the Income Tax Act, 1961 for the assessment year 2017-18 on 05/07/2022; 2) That, as per the said order, it was found that the penalty order passed under section 270 on 18/09/2021 was dismissed. 3) The appeal against the impugned order, ought to have been filed on or before 03.09.2022, is now filed on 21/10/2022 with a delay of 48 days. 4) The delay was due to technical glitches in the income tax portal in dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanations of the assessee and verifying the records, the assessment was completed under section 143(3) of the Act dated 06.12.2019. In the assessment order, while scrutinizing the profit and loss account of the assessee, the Assessing Officer has noted that the assessee has claimed a sum of Rs..1,01,64,738/- on account of repairs and maintenance. While going through the same, it was also noted that the expenditure incurred towards repair and maintenance, contains certain capital items of expenditure to the extent of Rs..20,32,948/- for which the assessee has not offered satisfactory explanation. Therefore, the sum of Rs..20,32,948/- was disallowed and added to the returned income of the assessee. 5. Subsequently, the Assessing Officer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be levied for under-reporting the income. The assessee has submitted that all the details before the Assessing Officer and also expenditure incurred by the assessee. Therefore, the Assessing Officer, on estimated basis, disallowed an amount of Rs..20,32,748/- and no penalty can be levied under section 270A of the Act. We find that the Assessing Officer has disallowed 20% of the expenditure claimed by the assessee. Disallowing the expenditure cannot be said that it is an under-reporting of the income. The assessee has filed all the details and not only that the Assessing Officer, on estimated basis disallowed the expenditure. Once, the disallowance made on estimated basis, no penalty can be levied. Therefore, the penalty levied by the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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