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TMI Blog2012 (11) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... his appeal of the assessee is directed against the order of Commissioner of Income Tax (Appeals)-VI Ahmedabad dated 25-02-2009. The grounds of appeal of the assessee reads as under:- "1. The Learned Commissioner of Income Tax (Appeals) has erred in law and on facts in confirming the penalty of Rs. 38,79,835/- levied under section 271(1)(c) of the I T Act, 1961 for the alleged concealment and / o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby a minimum penalty of Rs. 38,79,835/- was levied. The assessee carried the matter before the Ld. CIT(A) who confirmed the penalty. Now, The assessee is before the Tribunal. 4. Ld. Authorized Representative of the assessee, Sri S.N.Divatia submitted that the addition made on account of disallowance of loans of Rs. 80,77,500/- has been deleted by the Hon'ble ITAT Ahmedabad in ITA No. 774/Ahd/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below. 5. We have heard the rival submissions and perused the material available on record. The Hon'ble Co-ordinate Bench in ITA No. 774/Ahd/2007 in assessee's own case has deleted the addition of Rs. 80,77,500/-. Therefore, the penalty on this amount is not survived. So far the penalty on the addition made on account of disallowance on interest of Rs. 17,32,449/- is concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest. The interest expenditure has been disallowed on the basis that the assessee had diverted the interest bearing funds to the directors and others. The facts of the case showed that there was no business need and expediency in advancing money to the directors and to M/s Omkar Finstock Ltd to such huge extent. Since the issue whether there was any business need in advancing to the directors and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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