Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (2) TMI 345 - ITAT MUMBAI

2016 (2) TMI 345 - ITAT MUMBAI - TMI - Penalty under section 271(1)(c) - addition of foreign travel expenses - Held that:- There is no finding by the authorities below that the details furnished by the assessee were found to be incorrect or erroneous or false. In these factual circumstances, there would be no question of imposing penalty u/s. 271(1)(c) of the Act. A mere claim made in the return of income which is not acceptable by itself, will not amount to furnishing of inaccurate particulars .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

D SHRI RAM LAL NEGI, JUDICIAL MEMBER For The Appellant : Smt. Tasneem Varawala For The Respondent : Shri Vivek Ojha ORDER PER JASON P. BOAZ, A.M: This appeal by the assessee is directed against the order of the CIT(Appeals)-6, Mumbai dated 22/11/2011 confirming the levy of penalty of ₹ 1,18,573/- under section 271(1)(c) of the Income Tax Act, 1961 (in short the Act ) for assessment year 2007-08. 2. The facts of the case, briefly, are as under:- 2.1 The assessee, a company engaged in the bu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sh Kapoor and Shri Saroj Shroff to Bangkok. In this regard the assessee furnished explanations on the foreign trips undertaken alongwith details of air travel and amounts expended for boarding and lodging. The explanations furnished by the assessee were rejected by the Assessing Officer. As the assessee was not able to furnish evidences with regard to an amount of ₹ 2,71,400/- spent on boarding and lodging and the Assessing Officer was of the view that the assessee had failed to prove that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

avel expenses of ₹ 3,52,271/- before both the CIT(A)-6 and subsequently before the Tribunal. Both the assessee s appeals were dismissed by orders dated 06/04/2010 of the Ld. CIT(A) and by the Tribunal s order in ITA No.5734/Mum/2010 dated 18/05/2012. 2.2 In the meanwhile, the Assessing Officer took up penalty proceedings under section 271(1)(c) of the Act in respect of the disallowance of foreign travel expenses amounting to ₹ 3,52,271/- for assessment year 2007-08. After considering .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

evidence of foreign exchange obtained amounting to ₹ 2,71,400/- from Kanji Forex P. Ltd. And (ii) that the assessee failed to establish that the expenditure incurred on foreign travel was for the purposes of the assessee s business. 3.1 Aggrieved by the order of the CIT(A)-6, Mumbai confirming the levy of penalty of ₹ 1,18,573/- u/s.271(1)(c) of the Act vide order dated 22/11/2011 for assessment year 2007-08, the assessee has raised the following grounds:- On the facts and in the cir .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or assessment year 2006-07. It was submitted that in the course of assessment proceedings, the assessee furnished the detailed explanation and breakup of the foreign business trips undertaken by the two Directors Shri Satish Kapoor and Shri Saroj Shroff alongwith details of air tickets, dates of travel; business meetings held with different parties etc. It was submitted that the fact that the aforesaid expenditure was incurred on foreign travel was never doubted, even by the Addl. CIT, Range 2(3 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g of the two directors, but disallowed the entire expenditure of ₹ 3,52,271/- including ₹ 76,571/- spent on air tickets and Visa charges. 3.2.2. According to the Ld. Representative for the assessee, similar expenses on foreign travel were incurred by the assessee year on year and the fact that these were incurred for business purposes was never doubted. It is submitted that in immediately preceding assessment year 2005-06, disallowance of the same was made only to the extent where do .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ture were clearly mentioned in the assessee s profit and loss account accompanying the return of income for assessment year 2007-08. In this regard it is contended that a mere making of a claim that is not sustainable in law, by itself, would not amount to concealment of income or furnishing of inaccurate particulars and, therefore, would not justify the levy of penalty under section 271(1)(c) of the Act. In support of the assessee s averments that the penalty levied u/s. 271(1)(c) of the Act is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

3.4.1 We have heard the rival contentions and perused and carefully considered the material on record. The facts that emanate from the record are that the assessee company is engaged in the business of design and supply of lighting products. In the year under consideration it incurred foreign travel expenditure of ₹ 3,52,271/-. On examination thereof it was found that the foreign trips were undertaken by two Directors of the assessee company i.e. Shri Satish Kapoor and Shri Saroj Shroff to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ips of the Directors to Bangkok. The authorities below have never doubted that the said expenditure claimed on foreign travel was not incurred. The case of the Assessing Officer was that since the assessee failed to produce evidence to establish that the foreign travel expenditure claimed was incurred wholly and exclusively for the purpose of the assessee s business; the same were not allowable. 3.4.3 Admittedly, the details and explanations in respect of the foreign travel incurred were duly fu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assessee in the financial statements accompanying its return of income for assessment year 2006-07. In these circumstances it is neither the case of the Assessing Officer that the details furnished by the assessee were inaccurate, erroneous or false nor that the explanations and details furnished by the assessee was not bonafide or that all facts relating to the same and the computation of its income were not disclosed by it. The details furnished by the assessee pertaining to the issue of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version