Not Striking Out of Irrelevant Ground Vitiates Section 271(1)(c) Penalty Proceedings

Arvind Damodarlal Biyani Vs DCIT (ITAT Mumbai) It is observed that the assessee’s case was selected for scrutiny, as the assessee has earned interest income, amounting to Rs. 27,33,699/- and other income, amounting to Rs.27,59,226/-, against which interest expenditure amounting to Rs.51,76,302/- has been claimed by the assessee, thereby arriving at net interest income at nil. The A.O. has held that the assessee has not proved the genuinity of the transaction and has also not substantiated the claim of deduction, thereby initiating the penalty proceeding against the assessee. It is observed t...