Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (12) TMI 501 - AT - Income TaxAddition -job work charges received - In this view of the matter, the CIT(A) concluded that there was no merit in the contention of the assessee that the power and fuel consumption has been understated to the extent of damaged rice bran purchased on behalf of M/s. Balaji Agro Tech, which was used by the assessee itself as fuel. The CIT(A) further noticed that as per the agreement which the assessee had with M/s. Balaji Agro Tech, all the raw material was to be supplied to the assessee by the manufacturer itself, viz. M/s. Balaji Agro Tech and consequently, he concluded that the Assessing Officer was justified in rejecting the explanation of the assessee and making the impugned addition. We are in agreement with the reasoning given by the lower authorities for rejecting the explanation of the assessee. Merely based on the letter of M/s. Balaji Agro Tech dated 14.12.2006, one cannot accept the contentions and explanations of the assessee, when facts of the case like fuel consumption charges, etc. speak otherwise. Penalty - Not filing the tax audit report as required under S.44AB - merely based on the addition made in the assessment, or because the explanation of the assessee was not convincing and hence acceptable, it cannot be said that the assessee was not justified in nursing the impression that its turnover was below Rs.40 lakhs and the provisions of S.44AB are not attracted in its case - in the absence of any material brought on record by the Revenue to say that the impression of the assessee that its turnover was below Rs.40 lakhs was not bona fide, there is no justification for the levy of penalty under S.271B of the Act - Decided in favour of assessee.
|