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2015 (5) TMI 585 - AT - Income TaxPenalty u/s 271(1)(C) - disallowance was a case of concealment and that the assessee had furnished in accurate particulars of income - Held that:- The assessee valued its closing stock at cost or market value whichever is lower and on that basis adopted the market value of obsolete stock is also not disputed. The revenue authorities were of the view that the cost should have been taken, according to us, was an infirm presumption. The assessee during regular proceedings and in penalty proceedings showed the value & reasonable value of its products. This information and detail was always there with the revenue authorities. In so far as disallowance of items of P&L account are concerned, it is fact that the AO had made the disallowances on ad-hoc basis, because the assessee could not provide necessary details.No doubt the assessee could not provide the necessary details, but the fact remains that these expenses were routine administration expenses. The assessee is not a proprietary concern, where one can think of disallowances made on personal use. In such a circumstance, penalty is not exigible. Thus penalty is not exigible. - Decided in favour of assessee. Penalty u/s 271(1)(C) - disallowance the payment of office Rent - Held that:- Before us, except for making submissions that the CA firm Todarwal & Todarwal had made the submissions. This according to us does not serve any purpose. Unless the assessee is able to fully substantiate from his records, which are worth consideration with, the evidence, the query of the AO/ revenue authorities remain uncomplied with and getting and expecting a relief is a happy presumption by the assessee. Since, even before us the assessee was unable to bring anything worth the salt to substantiate the expenses, we do not intend to interfere with the order of the CIT(A), which we sustain. - Decided against assessee.
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