Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 1034 - AT - Income TaxPenalty u/s 271(1)(c) - fictitious book entry & cash payments of labour expenses - difference in turnover - Held that:- We find that the additions i.e. fictitious book entry & cash payments of labour expenses respectively as disallowed by A.O. on assumption basis and the same was restricted by CIT(A) to the extent of 25%. Against the order of the CIT(A), when revenue carried the matter in appeal before the ITAT in the assessee’s own case, ITAT has observed that the CIT(A) has examined each and every aspect of the claim of the expenses raised by the assessee. No specific defect has been pointed out in the order of the CIT(A) and hence found no infirmity therein and accordingly confirmed the order of the CIT(A). In view of the above, we find that the disallowance sustained for the assessment years 2005-06 as well as 2006-07 is only on assumption basis, therefore, no penalty can be levied. Therefore, we find no infirmity in the order passed by the Ld. CIT(A). In so far as difference of turnover is concerned, during the course of the assessment proceedings, the A.O. has asked the assessee to reconcile the difference of ₹ 2,91,964/- being the difference between the net project turnover which is of ₹ 4,00,00,304/- and the turnover reflected in the books of accounts of ₹ 3,97,08,340/-. The assessee was not able to substantiate the difference and paid taxes accordingly. In our opinion, the difference in turnover is neither amounting to concealment nor filing of inaccurate particulars. On this count, no penalty can be levied. This ground of appeal raised by the revenue is dismissed. - Decided in favour of assessee
|