Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 845 - AT - Income TaxPenalty u/s. 271(1)(c) - disallowance on foreign travel expenses - Held that:- Assessee’s submissions in this regard is note worthy that both the wives, who were also Directors of the company were receiving considerable salary which was accepted year after year. Hence, the visits cannot be said to be for non-business purposes. It has further been noted that disallowance in this regard in the preceding year was only 20% and on that addition penalty was not imposed, even the penalty notice has been issued by the AO. In this background it is to concluded that section 271(1)(c) postulates imposition of penalty for furnishing of inaccurate particulars and concealment of income. In this case disallowance has been made only on estimate basis. In the preceding year this disallowance was only 20% and no penalty was imposed. Thus on the facts and circumstances of this case the conduct of the assessee cannot be said to be contumacious so as to warrant levy of penalty u/s. 271(1)(c) - mensrea was a essential requirement of penalty u/s 271(1)(c) as decided in Dilip N. Shroff Versus Joint Commissioner of Income-tax And Another [2007 (5) TMI 198 - SUPREME COURT] - in favour of assessee.
|