TMI Blog2015 (12) TMI 1020X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee was that by mistake invoice to that extent relating to exhibition in India were sent by the parent company to China and that way tired to explain that the expenses debited in the Profit & Loss Account were actually incurred and there was no concealment and assessee had not furnished any incorrect particulars of income. If that was so, then the assessee had ample opportunity to get those invoices from its counterpart and/or could have obtained copy thereof from the parent company itself and submitted to the Assessing Officer at least during the penalty proceedings. Unfortunately, no such evidence was filed neither before the Assessing Officer nor even before the CIT(A) in the appellate proceedings. In view of the above the CIT(A) was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g total income of ₹ 53,09,700/-. Assessment was made on a total income of ₹ 1,03,52,020/- vide order under section 143(3) dated 23.11.2011. One of the additions was on account of disallowance of ₹ 24,96,318/- on which the Assessing Officer imposed penalty under the provisions of section 271(1)(c) vide order dated 30.05.2012. 4. The matter was carried before the first Appellate Authority wherein various contentions were raised on behalf of the assessee and after considering the same the CIT(A) upheld the penalty in question. 5. The learned A.R. for the assessee, before us, submitted that the CIT(A) was not justified in confirming the order of the Assessing Officer who levied penalty under section 271(1)(c) of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cial year certain Exhibitor Promotion expenses were incurred by Deutsche Messe AG (DMAG), the parent company of the assessee, for fairs organized in India and China. Four fares were organized in India and China for which the parent company had incurred certain expenses. The parent company apportioned the expenditure between the assessee and the company in China equally. The Assessing Officer called for details of these expenses during the course assessment proceedings. The same were provided. On the basis of the detailed filed during the assessment proceedings the Assessing Officer concluded that out of the total invoices amounting to Euro 246641.38 only a sum of Euro 209647.94 could be related to trade fairs held in India. As per the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation given is found bonafide and all the facts relating to the same and material to the computation of his total income have been disclosed by assessee. The disclosure should be full so that nature of claim could be inferred from the financial statements and and/or the notes on account, audit enclosed with the return itself. There should be bonafide claim by assessee. Merely because some addition has been made and such addition has become final, it does not necessarily follow that penalty is leviable. Therefore where inadmissible claim is made due to inadvertent and bonafide mistakes penalty is held to be not warranted. The Assessing Officer is expected to exercise their discretion based on the facts of the case. Mere claim of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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