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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 ..... on'ble Bench raised alternative grounds, which are extracted below for ready reference of this Hon'ble Bench; 6. The learned CIT(A) erred in law and on facts in not appreciating that the disallowance of expenditure at 10% of total expenditure on an estimate basis was not permitted, when the books of the appellant was not rejected, on the facts and circumstance of the case. 5. The Petitioner / Appellant in support of ground No. 6 above had in the paper book filed before this Hon'ble Bench, documents filed before the Learned CIT(A), which are numbered at pages 39,40 and 41 which was namely, the computation of income depicting the income from profession, the TDS deducted by M/s Smile Electronics for professional fees and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 Stock Exchange Ltd., reported in 305 ITR 227. Thus, the Petitioner / Appellant humbly submits that the Hon'ble Income-tax Appellate Tribunal Bangalore "B" Bench, Bangalore may be pleased to rectify the error in so far as non consideration of facts and submissions made by the Petitioner / Appellant as mentioned in the above paragraphs in the interest of justice and equity. 11. It is humbly submitted that if this Miscellaneous Petitioner under section 254[2] of the Act is not considered by this Hon'ble Bench, the Petitioner / Appellant would be put to great ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted 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 interest on account of Sundaram Finance Housing Loan and Rs. 4,19,981/- being processing fee in respect of loan from Sundaram Finance. Thereafter, the tribunal observed that Interest on housing loan is allowable if the house property is acquired by using such housing loan and rental income is earned and / or if such property is used for business purposes. The bench also observed that as per P&L account, no rental income has been received and there is no business income or business activity and therefore, such interest on Sundaram Finance Housing Loan and Processing fess for lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 10% of the total indirect expenses debited in P&L account of Rs. 28.13 Lakhs being disallowance of Rs. 2,81,338/- 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 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, 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 the assessee himself in P & L Account. Regarding the amount of Rs. 4,19,981/-, the assessee himself stated in the P&L account available on page no. 41 of the paper book that Processing Fee - Loan Sundaram Finance - Rs. 4,19,981/- and since, the only loan from Sundaram Finance is Housing Loan, this observation of the Tribunal is also not incorrect. Hence I find no apparent mistake in the Tribunal order.
4. In the result, the M.P. filed by the assessee is dismissed.
Order pronounced in the open court on the date mentioned on the caption page. X X X X Extracts X X X X X X X X Extracts X X X X
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