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2019 (2) TMI 525 - AT - Income TaxLevy of penalty u/s 271(1)(c) - disallowance of traveling expenses - Held that:- Assessee cannot be penalized for making a claim of expenditure, which is not acceptable to Ld. AO. In fact it is found that Ld.A.O. disallowed expenditure on ad hoc basis. This itself shows that there is no dispute regarding all particulars being filed by assessee which is disallowed in part by Ld. AO on premise that it has not been incurred exclusively and wholly for purpose of business of assessee. AO has not brought on record anything contrary to establish that claim of assessee do not pertain to travelling expenses. From paper book filed before us it is observed that assessee has placed vouchers and invoices raised by airlines in respect of payments made for travel by its officials. Further Assessing Officer has not found fault with explanation offered by assessee in response to notice u/s 274 of the Act. Merely because disallowance has been made which has been confirmed by Ld.CIT(A), he proceeded to levy penalty on ad hoc disallowance - Decided in favour of assessee.
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