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TMI Blog2019 (1) TMI 2030X X X X Extracts X X X X X X X X Extracts X X X X ..... direct expenses debited in P L account only whereas as per the Tribunal, the expenses of Rs. 2 Lakhs on account of commission paid, Rs. 14,29,951/- being interest in respect of Sundaram Finance Housing Loan and Rs. 4,19,981/- being Processing Fee in respect of Loan from Sundaram Finance are not allowable at all but the Tribunal is not supposed to increase the disallowance while deciding the appeal of the assessee and therefore, it was held that no inference is called for in the order of CIT(A) on this issue. Hence it is seen that this is the ultimate decision of Tribunal as per the impugned Tribunal order that no inference is called for in the order of CIT (A) and hence, these observations of the Tribunal that the assessee has no business i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce find no apparent mistake in the Tribunal order. X X X X Extracts X X X X X X X X Extracts X X X X ..... umbly submitted that the interest incurred was not for obtaining a housing loan rather was a mortgage loan obtained for use in business, for lending an unsecured loan to the company in which the appellant has earned professional fees, and hence the finding that the appellant has not earned business income during the year and that the appellant has obtained a housing loan would amount to an error apparent from record. 9. In view of the above submissions, the Petitioner / Appellant humbly submits that the non appreciation of the facts and the contentions raised would constitute an error on record. 10. Reliance is placed on the parity of reasoning of the decision of the Hon'ble Apex Court in the case of ACIT Vs. Saurashtra Kutch Stoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct and in this regard, he drawn my attention to pages 39 to 41 of paper book and pointed out that on these pages, there is computation of income and P&L account of the assessee for the relevant year. He pointed out that as per the P&L account, there is an income of the assessee of Rs. 27.50 Lakhs under the head Director Remuneration. He submitted that although this is stated to be "Director Remuneration" but actually this is professional income and therefore, this observation of the Tribunal that there is no business income is incorrect. Regarding second mistake, he submitted that in the same para 12 of the Tribunal order, this is also stated by the Tribunal that the major expense debited to the P & L Account is Rs. 14,29,951/- being intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in the P&L account and during the course of scrutiny assessment, the ld. AR of assessee was not able to establish all bills and vouchers and since these expenses are on the higher side compared to the nature and scale of the business of the assessee, 10% of these expenses amounting to Rs. 2,81,338/- stands disallowed and added back to the income to the assessee. This disallowance was confirmed by CIT (A) on this basis that on the issue of estimated disallowance in the absence of complete details no being available, the estimated disallowance appears to be reasonable and not excessive. When the assessee carried the matter in appeal before the Tribunal, the Tribunal held in the impugned Tribunal order that the AO has made disallowance of 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hares. Hence from these six headings of income credited in the P&L account, it is clear that in the present year, no business income is there. Hence in my considered opinion, this observation of Tribunal in para 12 that there is no business income in the present year is not incorrect. 3. Regarding the second alleged mistake that the interest paid to Sundaram Finance is not in respect of Housing Loan, I find that the assessee has himself stated in P&L account available on page no. 41 of the paper book that Interest-Sundaram Finance Housing Loan-Rs. 14,29,951/- and therefore, this observation of the Tribunal is also not incorrect when this interest of Rs. 14,29,951/- is in respect of Housing Loan even as per the nomenclature given to it by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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