| The Tax Publishers2019 TaxPub(DT) 1953 (Ahd-Trib) INCOME TAX ACT,1961
Section 271(1)(c)
When relevant details to support the addition made by AO were placed on record, despite the fact that disallowance was confirmed by tribunal then, leviability of penalty under section 271(1)(c) was not tenable.
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Penalty under section 271(1)(c) - Concealment of income - Primary details to support the foreign travel expenses available on record. -
AO made disallowance of foreign travel expenses which was confirmed by Tribunal in quantum proceedings and further revenue also imposed penalty under section 271(1)(c) on the ground that the business purpose of foreign travel expenses was not established. Assessee contended that as the relevant basic details towards foreign travel expenses, namely, bills, vouchers, place of visit, etc. were submitted and the same were not found to be untrue, the imposition of penalty was not justified. Held: When the relevant primary details of foreign travel expenses to support the foreign travel expenses were available on record then notwithstanding the disallowance confirmed by the Tribunal in the quantum proceedings, penalty under section 271(1)(c) of strict nature was not sustainable. Further, the appeal of Revenue was not maintainable owing to low tax effect in terms of CBDT Circular No. 03/2018, dt. 11-7-2018.
Relied:CIT v. Reliance Petroproducts (P) Ltd. (2010) 322 ITR 158 (SC) : 2010 TaxPub(DT) 1683 (SC)
REFERRED : DCIT, (OSD), Range-1, Ahmedabad v. M/s. Applitech Solutions Ltd. and Vica-Versa in (ITA. No. 1600 & 1452/AHD/2014 & C.O. No. 245/Ahd/2014, dt. 19-4-2016)
FAVOUR : In assessee's favour
A.Y. : 2000-01
IN THE ITAT, AHMEDABAD BENCH
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