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2018 (4) TMI 1727 - AT - Income TaxPenalty u/s. 271(1)(c) - AO brought to tax income to tax as income under the head “income from other sources" as against income declared by the assessee as income under the head “income from house property" - no benefit of expenses were allowed which was claimed to be incurred in relation to the earning of said income as the assessee could not show that these expenses were incurred in connection with the services for which service charges were received - HELD THAT:- It is the claim of the assessee that the expenses were incurred exclusively for earning the said income and if the opportunity is provided , the assessee will be able prove its case that these expenses were genuinely , bonafdily, exclusively and wholly incurred for providing services to Tata Teleservices Maharashtra Limited . The matter need to be restored back to the file of the AO for fresh adjudication on merits in accordance with law . Needless to say that the AO shall provide proper and adequate opportunity of being heard to the assessee in accordance with the principal of natural justice. The onus is on assessee to prove that these expenses which were debited to Income and Expenditure Account against service charges received from Tata Teleservices Maharashtra Limited credited to Income and Expenditure Account , were genuinely, wholly, exclsuively and bonafidely incurred in relation to services rendered as per contract to Tata Teleservices Maharashtra Limited. The AO shall allow assessee to file necessary evidences / explanation in support of its contentions. - Appeal of the assessee is allowed for statistical purposes
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