The Tax Publishers2015 TaxPub(DT) 4778 (Ahd-Trib)div class=Section1>

 

Himson International (P) Ltd. v. DCIT

 

INCOME TAX ACT, 1961

--Penalty under section 271(1)(c)--Leviability Disallowance of foreign travel expenses --Held: The genuineness of foreign travel expenses was not in doubt. The disallowance of expenses was made because of inability of the assessee to substantiate its claim by producing necessary supporting vouchers. Mere disallowance of expenses would not empower the revenue to levy penalty under section 271(1)(c), therefore, penalty was directed to be deleted.

Income Tax Act, 1961, Section 271(1)(c)

Relied:CIT v. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR 158 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2004-05


 

INCOME TAX ACT, 1961

--Penalty under section 271(1)(c)--Leviability Disallowance of technical consultancy charges --Held: The genuineness of technical consultancy expenditure was not in doubt. From the particulars furnished by assessee in respect of expenses, it was inferred that the same was capital in nature. Assessee claimed that it was a revenue expenditure as no tangible asset was acquired by assessee by incurring the said expenditure. Thus, disallowance of expenses was made because of difference of opinion as to nature of expenses and therefore, penalty under section 271(1)(c) could not be sustained.

Income Tax Act, 1961, Section 271(1)(c)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2004-05



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