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2016 (11) TMI 1052 - AT - Income TaxPenalty u/s 271(1)(c) - income from other sources - as per assessee reimbursements do not constitute the income of the assessee - Held that:- It is an undisputed fact that the assessee received the said amount of ₹ 14 lakhs from M/s. Deesha and the same was spent towards painting of the entire building spending a sum of ₹ 10,58,629/-. Some of the amount was spent for erecting the scaffolding for bearing the display boards. It is the claim of the assessee that these amounts constitute ‘reimbursements’ by M/s. Deesha and reimbursements are outside the scope of chargeability to tax. These arguments were dismissed by the Tribunal in the quantum proceedings and the Tribunal held that the assessee resorted to create agreement for self-serving and the assessee arrange itself affairs to not to bring the said receipts of ₹ 14 lakhs to tax. As noticed by the Tribunal in its order unable to understand as to how ₹ 1 lakh was received towards bimonthly rent when the BMC fees itself is exceeded the sum of ₹ 3.75 lakhs (rounded off). Further unable to appreciate the fact of M/s. Deesha reimbursed the expenditure on the painting of the entire building amounting to more than ₹ 10.5 lakhs when the scaffolding for display of the advertisement is only in the area of 80 X 120 sq ft. I am absolutely convinced on the fact that the affairs are not well so far as the accounting of the amount of ₹ 14 lakhs is concerned. Assessee is not forthcoming with all the facts in this regard. Therefore, it is of the opinion that the second agreement constitutes ‘self-serving document’. Thus the order of the CIT (A) in confirming the penalty relatable to ₹ 14 lakhs is fair and reasonable and it does not call for any interference. - Decided against assessee
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