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2012 (11) TMI 754 - ITAT DELHIPenalty u/s 271(1)(c) of the Act – assessee was required to furnish the details of consultancy expenditure – alleged that assessee was not able to file the invoice or the bill – Held that:- Assessee claimed payment of professional charges in two years. The expenditure in both the years is substantial compared to other expenses debited in profit and loss account - In respect of professional charges, admittedly there is no evidence to prove that they were incurred for the purpose of business. The ostensible reason is that looking to the nature of services, no documentation could be made in respect of services rendered - no basis has been provided for computing the payment either in this or in the next year. This has to be seen in the context of the fact that no business has been conducted in these two years and there is no change in the investments also - mere showing the expenditure under a separate head “consultancy charges” does not lead to inference that all the facts were disclosed - payment has no nexus whatsoever with the business of the assessee and that the explanation furnished by the assessee is not bona fide. Accordingly, the levy of penalty is upheld - appeals dismissed
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