The Tax Publishers2019 TaxPub(DT) 1173 (Del-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Since AO had not brought on record anything contrary to establish that claim of assessee did not pertain to travelling expenses and there was no dispute regarding all particulars being filed by assessee which was disallowed in part by AO, therefore, imposition of penalty was not warranted.

Penalty under section 271(1)(c) - Disallowance of travelling expenses - Concealment and furnishing inaccurate particualrs of income - Validity

Assessee's case was selected for scrutiny and assessment proceedings were initiated by issuing statutory notices. AO passed assessment order by making ad hoc addition in respect of travelling expenses claimed by assessee incurred for air travel undertaken by Executive along with other employees. Accordingly, AO issued notice under section 271 read with section 271(1)(c) for filing of inaccurate particulars/concealment of income and levied penalty on ad hoc disallowance on account of travelling expenses. CIT(A) confirmed the penalty.Held: Assessee could not be penalized for making a claim of expenditure, which was not acceptable to AO. It was found that AO disallowed expenditure on ad hoc basis. This itself shows that there was no dispute regarding all particulars being filed by assessee which was disallowed in part by AO on premise that it was not incurred exclusively and wholly for purpose of business of assessee. AO has not brought on record anything contrary to establish that claim of assessee did not pertain to travelling expenses. Merely because disallowance by AO made was confirmed by CIT(A), he proceeded to levy penalty on ad hoc disallowance.

Followed:CIT & Anr. v. SSA'S Emerald Meadows in (Special Leave to Appeal (C)....../2016 (CC No.11485/2016), dt. 5-8-2016) : 2016 TaxPub(DT) 4242 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :



IN THE ITAT, DELHI BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com