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TMI Blog2025 (5) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... R PER PRADIP KUMAR KEDIA, AM : The captioned appeal has been filed at the instance of the assessee seeking to assail the First Appellate order dated 10.09.2024 passed by Commissioner of Income Tax (A), National Faceless Appeal Centre ("NFAC"), Delhi ["CIT(A)"] under s. 250 of the Income Tax Act, 1961 ["the Act"] arising from the assessment order dated 11.06.2021 passed under s. 270A of the Act p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and stationary etc. during Financial Year which were claimed to be necessary for survival of the business and has no connection with exempt income per se and hence, there is neither under-reporting nor mis-reporting of any income per se. The AO has invoked the provision of s.270A as an automatic consequence on mere disallowance of expenditure in stereo-typed manner merely on the grounds of resul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces must reasonably point to the conclusion that the disputed amount represents income and the assessee has under-reporting the same. The Revenue in the instant case has computed an estimated disallowance under Section 14A solely due to existence of exempt income. It is not the case of the Revenue Authorities that assessee has, in fact, incurred any expenses to earn the exempt income and suppress ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvite rigors of penalty. Where all material facts relevant to the issue were placed on record, mitigating circumstances to disprove any culpability of any sort against the assessee is established by implication. 7. In CIT vs. Liquid Investment & Trading Co., ITA No.240/2009 judgment dated 05.10.2010, the Hon'ble Delhi High Court observed that issue of disallowance under Section 14A is a debatable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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