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2018 (9) TMI 468 - AT - Income TaxLevy of penalty u/s 271(1)(c) - disallowance of expenditure under the Head “Business Promotion” - Held that:- CIT(A), on verification of the bills and vouchers found there are some occasional gifts to the Doctors and staff of the hospitals and that some laptop is purchased and that ledger shows approximately ₹ 45,300/- have been spent for followup of tender in Armed Forces medical material supply Depot. It is not pointed out or any specific finding have been given that while incurring these expenses as to what offence is committed by the assessee-company and what is the prohibition by any Law which may not allow the assessee-company to incur these expenditure. Therefore, Explanation-1 to Section 37 may not apply in the case of the assessee-company. It is a case of disallowance of part of the expenses which have been incurred consistently by assessee-company in earlier years as well. Therefore, it is not a fit case for levy of the penalty. - Decided in favour of assessee
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