TMI Blog2014 (2) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... idence to the satisfaction of the Revenue authorities, it could not be said that the Revenue has proved that the expenses claimed were inflated or non-genuine – Relying upon CIT Vs. Reliance Petro Products P. Ltd. [2010 (3) TMI 80 - SUPREME COURT] - it is not a fit case to levy penalty under section 271(1)(c) of the Act, which was rightly cancelled by the CIT(A) – Decided against Revenue. - ITA No.150/Ahd/2013, ITA No.2609/Ahd/2010 - - - Dated:- 7-2-2014 - Shri G. C. Gupta And Anil Chaturvedi,JJ. For the Petitioner : Shri K. C. Mathews, Sr. DR For the Respondent : Shri K.K. Shah ORDER Per G. C. Gupta, Vice-President : These two appeals of the Revenue for the assessment year 2005-2006 and 2004-2005 are directed against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-genuineness of the expenses, the penalty should be imposed and relied on the decision in Vijay Proteins Ltd. Vs. ACIT, 2 SOT 116 (Raj) and Shagoon Emporium v. Income-tax officer, 48 TAXMAN 220 (Del)(Mag). He relied on the order of the AO. He also relied on series of decisions in Tribhovandas Chelaram Vs. ACIT, (2011) 16 taxmann.com 112 (Ahd), ACIT Vs. Harvey Heart Hospitals Ltd., (2013) 32 taxmann.com 348 (Chennai), Sanghvi Swiss Refills P. Ltd. Vs. ACIT, (2012) 28 taxmann.com 208 (Bom), Shyourajsingh B. Chauhan Vs. ACIT, (2010) 41 SOT 453 (Ahd), Sanjay Enterprises (P) Ltd. Vs. ITO, (2012) 17 taxmann.com 94 (Delhi), Om Prakash Gupta Vs. ITO, (2002) 81 ITD 55 (CHD), DCIT Vs. grey Cast Foundry Works, (2006) 99 ITD 515 (Ahd), New Holland T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l submissions carefully and perused the orders of the AO and the CIT(A) and the decisions cited at Bar. We find that it is a case of certain disallowance made out of the "wages to workers" on account of cash payments made to the workers and some defects in the maintenance of supporting vouchers. We find that the plea of the department that there was a discrepancy in the mention of voucher number is devoid of any merit, as the voucher number in the cash book was generated by the computer and that could not tally with the actual voucher number found in the voucher itself in the bulk of vouchers produced by the assessee. We find that the assessee has filed an explanation with regard to the payments made to the workers and the explanation of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stification for addition made in the assessment case of the assessee is different from the penalty imposed on account of concealment of income or filing of inaccurate particulars of income and that certain disallowance/addition could legally be made in the assessment proceeding on the preponderance of probabilities, but no penalty could be imposed under section 271(1)(c) of the Act on the preponderance of probabilities and Revenue has to prove that the claim of the expenses by the assessee was not genuine or was inflated to reduce its tax liability. No such material has been produced by the AO to suggest that the assessee has infact inflated its expenses or non-genuine expenses were claimed under the head "wages to workers". The decisions r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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