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2018 (2) TMI 1140 - ITAT KOLKATAPenalty u/s 271(1)(c) - audit expenses claimed to be incurred by the assessee company towards travelling and conveyance of the Articled Clerks, who were C.A. students receiving training from the assessee-firm - Held that:- Although this claim of the assessee was not accepted by the Assessing Officer on the ground that it was specifically submitted by the assessee earlier that the audit expenses were incurred by its Audit staff and Audit Clerks without any reference to the Articled Clerks undergoing training with it, it is observed that nothing has been brought on record by the Assessing Officer to establish that the claim of the assessee was wrong and the audit expenses in question were incurred on the Audit staff, which did not include Articled Clerks undergoing training with the assessee-firm as per the stipulation of the ICAI. No doubt, the assessee firm also failed to bring anything on record to support and substantiate its explanation but such failure, in our opinion, can justify the addition made by the Assessing Officer to the value of Fringe Benefit but not the imposition of penalty under section 271(1)(d), especially when the audit expenses were separately debited by the assessee-firm in its Profit & Loss Account and all the relevant details of the same were fully and truly furnished by the assessee during the course of assessment proceedings before the Assessing Officer. No case where the assessee can be said to have furnished inaccurate particulars of Fringe Benefits to justify the imposition of penalty under section 271(1)(d). - Decided in favour of assessee.
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