Kaycee Finstock Pvt Ltd. Vs DCIT (ITAT Mumbai)
ITAT Mumbai held that additional evidence demonstrating that no tax advantage accrued to assessee owing to continuous losses needs verification. Accordingly, matter of imposing penalty u/s. 271(1)(c) remanded back.
Facts- The assessee company is engaged in business of providing loan against share to clients and funds arranged by refinance from other NBFC. During the assessment proceeding AO found that the assessee company had reduced Rs.4,55,72,663/- from the taxable income on the ground that aforesaid amount represent interest on debenture written of and this amount was added to taxable income in computation of income u/s.40(a) of the Act in earlier assessment year. On verification, it was found that the assessee had added back interest amount to Rs.2,78,83,738/- only during earlier assessment years. After these observations the assessee filed a rectified computation during the assessment proceeding and explain that there is an apparent mistake by the auditor in related to adjustment of interest on debentures so this mistake is suomoto brought in the assessment proceeding and the rectification as done by the assessee by filing the rectified computation and confirm the addition. The alleged addition is confirmed amount to Rs.1,76,88,923/- (Rs.4,55,72,663/- – Rs.2,78,83,738/-). Finally, the assessment was completed, and the said amount was added back to the total income.
