Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 1960 - AT - Income TaxPenalty u/s 271(1)(c) - addition towards 14A, claim for membership fees and interest on late payment - HELD THAT:- It is evident from the discussion made above that such penalty has been imposed on making disallowance of certain expenses. But for that, there is nothing on record to show that the assessee lodged bogus claims in respect of these expenses. That apart, the expenses were claimed by the assessee in a bona fide manner. The mere fact that the above disallowances have been made do not bring a case within the parameters set out in section 271(1)(c) Hon’ble Supreme Court in CIT vs. Reliance PetroProducts Private Ltd. [2010 (3) TMI 80 - SUPREME COURT] has held that a mere making of a claim which is not sustainable in law, by itself will not attract penalty 271(1)(c) when the assessee furnishes all the relevant particulars in his return which are not found to be inaccurate. There is no dearth of decisions holding that penalty under section 271(1)(c) cannot be imposed on disallowance of expenses, which were not otherwise bogus. Penalty deleted - Decided in favour of assessee.
|