TMI Blog2014 (7) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... only - The disallowance was considered at this second appellate stage by the Tribunal and some part relief out of this disallowance out of wages was allowed to the assessee in the quantum appeal of the assessee - it cannot be said that the assessee has admitted bogus payment claimed under the head “wage expenses” - since it is a case of disallowance made out of wage expenses for the reason that the assessee could not establish the same fully with documentary evidences, it is not a fit case for levy of penalty u/s 271(1)(c) – Decided in favour of Assessee. - ITA No.581/Ahd/2010 - - - Dated:- 4-7-2014 - G C Gupta And Anil Chaturvedi, JJ. For the Appellant : Shri S B Vaidya For the Respondent : Shri B L Yadav, CIT-DR ORDER :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 238 ITR 415 (Guj). 5. The learned counsel for the assessee in his rejoinder submitted that the assessee has never admitted any bogus wages, and in fact the disallowance out of wages is by way of estimate only. He referred to the reply of the assessee dated 9.8.2008 filed before the AO, wherein In para 3, it was clearly mentioned that some employees might have put the signatures of some other employees and it might not be possible to produce the employees, and that the assessee is ready to offer 20% of such expenses in respect of which the signatures do not tally as additional income assessable only for A.Y.1998-99 subject to imposing no penalty. The assessee has categorically stated in his reply in para 4 (j) that the assessee has agree ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in case of assessee is higher compared to such ratio in case of Venus Jewels P. Ltd. In these facts of the case, we are of the considered opinion that the disallowance has been made by the department out of wage expenses by way of estimate only. The disallowance was considered at this second appellate stage by the Tribunal and some part relief out of this disallowance out of wages was allowed to the assessee in the quantum appeal of the assessee. In the facts of the case of the assessee, it cannot be said that the assessee has admitted bogus payment claimed under the head wage expenses . Accordingly, we hold that since it is a case of disallowance made out of wage expenses for the reason that the assessee could not establish the same fu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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