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2018 (9) TMI 796 - MADRAS HIGH COURTPenalty u/section 271(1)(c) - sum debited to the profit and loss account under the head 'other expenses', which was included under 'administrative and other expenses' and the same was stated to have been incurred for land up-keep - Held that:- Admittedly, the expenses, which were included under the head 'other expenses' towards land up-keep, when pointed out by the Assessing Officer, to be justified, the assessee was unable to place any documents to substantiate the same. On the contrary, they accepted it as a non business expenditure. Accordingly, the same was added to the income. The assessee is a company engaged in financial services such as leasing and hire purchase finance and it is beyond one's apprehension that in their returns, they inadvertently included the sum incurred for land up-keep expenses and debited to the profit and loss account. There is nothing on record to show that the inclusion of the said sum under the head 'administrative and other expenses' was an inadvertent error. Furthermore, the assessee was unable to substantiate their stand before the CIT (A) that there was an attempt to file revised returns. Thus, the Authorities below as well as the Tribunal rightly came to the conclusion, on the facts and in the circumstances of the case, that penalty was leviable on the assessee. - Decided against assessee
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