This case pertains to the imposition of penalty u/s 270AA for ...

Penalty imposed for negative interest spread on unsecured loans, assessee seeks immunity.

Case Laws Income Tax

October 29, 2024

This case pertains to the imposition of penalty u/s 270AA for under-reporting of income due to misreporting. The assessee had availed interest-bearing loans and advanced unsecured loans, with the interest payable on certain loans being higher than the interest earned. The Assessing Officer (AO) made an addition on account of the negative interest spread and initiated penalty proceedings, alleging misreporting of income. However, the High Court observed that prima facie, it did not appear to be a case of misreporting as the facts were disclosed by the assessee. The AO passed the penalty order without considering the assessee's contentions due to technical difficulties. The High Court set aside the AO's order and remanded the matter for fresh consideration of the assessee's request for immunity from penalty u/s 270AA.

View Source

← Previous Next →

This case pertains to the imposition of penalty u/s 270AA for ...

Penalty imposed for negative interest spread on unsecured loans, assessee seeks immunity.

Case Laws Income Tax

October 29, 2024

You may also like:

Disallowance on interest u/s. 36(1)(iii) - AO has compared the payment of interest @ 12%/15% on the unsecured loan obtained by the assessee with the interest amount...

Addition u/s 68 - Since the assessing officer treated the unsecured loan as unaccounted received consequent interest was also disallowed. AO without any material...

Addition u/s 69A - unsecured loans - interest expenditure - The case involved disputes over the addition of unsecured loans under section 69A and the disallowance of...

Addition u/s 68 - Unsecured Loans - onus to proof - Assessee had also paid interest on the unsecured loan after deducting TDS @20% which reveals that during subsequent...

The Appellate Tribunal held that the Assessing Officer erred in making additions u/s 68 for unsecured loans and disallowing interest component. The assessee demonstrated...

Disallowance of interest expenditure - The interest income earned by the assessee is from loans and advances given to sister concern which is shown by the assessee to...

Deemed dividend u/s 2(22)(e) is not taxable in the hands of the assessee company if it is not a shareholder in the companies that extended loans. It is chargeable to tax...

The Appellate Tribunal dismissed the assessee's appeal regarding the revision u/s 263 concerning unsecured loans received. The Principal Commissioner found that the...

Disallowance u/s. 2(22)(e) - assessee has received unsecured loan and assessee company from whom it has obtained unsecured loan there were two common directors - Since...

Levying penalty u/s 271D - Accepting loan / deposits in cash from relatives in violation of section 269SS - the assessee has taken loans from relatives to finance her...

Unsecured loans treated as unexplained cash credits u/s 68. Interest paid on such unexplained loans also added to income. Assessee's contention of repayment of loans...

The High Court held that the reopening of assessment u/s 147 was not justified. The mere existence of an outstanding unsecured loan in the assessee's balance sheet did...

Disallowance of interest on unsecured loan taken which is 100% subsidiary of the assessee - addition on the ground as it is not incurred for the purpose of assessee’s...

TP Adjustment - Interest on interest outstanding/interest receivable - The interest on a loan is a compensation received towards the utilisation of funds given by the...

Deemed income u/s 56(2)(vi) - interest free unsecured loan - amount was received from HUF and was recorded in the balance sheet as liability of unsecured loan - No addition - AT

Quick Updates: