9911796707
TMI Blog2017 (2) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... mbai vide his order dated 21-03-2012 u/s 271(1)(c) of the Act. 2. The only issue in this appeal of assesse is against the order of CIT(A) confirming levy of penalty by the AO u/s 271(1)(c) of the Act in respect of disallowance of expenses of foreign Travel expenses and inter city travel expenses. 3. Brief facts relating to the issue are that the assessee is engaged in the business of shares and securities and carries on brokering activities being member of National Stock Exchange. During the year under consideration the assessee claimed foreign travelling expenses amounting to Rs. 21,19,584/-, which were incurred on account of foreign travel of director. The assessee also incurred travelling and conveyance expenses i.e. the domestic trave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te foreign travel claim of Rs. 21,19,584/- by its director that the expenditure is wholly incurred wholly and exclusive for the purpose of business, the revenue authorities disallowed the claim of the assessee. Even before us the assessee failed to substantiate that the expenditure incurred for the purpose of business. Therefore, we find no infirmity in the order of CIT (A) in confirming the disallowance of expenditure of Rs. 21,19,584/- on account of foreign travel by AO. Accordingly, we confirm the order of CIT (A) in this regard and dismiss the ground raised by the assessee. 11. After hearing the learned representatives of the parties and perusing the record, the disallowance made by the revenue authorities in this ground is also simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vidences on record. I find that the appellant even before the CIT (A) or before ITAT was not able to prove its claim. Therefore, it is not a case where the appellant has made a legal claim of the expenses that are otherwise allowable to it. It is a case where the appellant had made a false claim without any corroborative evidences to prove the same. Therefore, the case laws relied upon by the appellant are of no help to it. In view of the foregoing discussion, the penalty levied by the Ld. AO is accordingly, confirmed. This ground of appeal is dismissed." Aggrieved, now assessee is in second appeal before Tribunal. 5. We have heard rival contentions and gone through the facts and circumstances of the case. We have gone through the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating to travelling expenses. The only premise for making addition was that, "Nothing has been brought on record to show that the trip was undertaken to explore foreign market and to search for new business opportunities. Even otherwise the expenditure incurred for exploring the foreign market and search for new business opportunities would be for the purpose of new venture." Further, in regard to inter city expenses, the AO added by observing that, "Nothing has been brought on record to show that the trips were undertaken to meet the old clients and pursue new clients. The expenditure is not incurred wholly & exclusively for the purpose of assessee's business." 6. From the above facts it is clear that the expenditure is not in doubt but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reshold by looking at the return. That would negative and render otiose the very provisions of the statute. We are of the view that as per rule of evidence, there is distinction between set of facts "not proved" and facts disproved and facts proved. Benefit of the principle that mere non-satisfactory nature of explanation furnished cannot amount to proof of falsity of explanation furnished can apply in case the fact-finding authority reaches to a stage where it can only conclude that the fact alleged is "not proved" which would result that except rejection of the explanation furnished by the assessee, there is no material to sustain the plea of concealment. But, on the other hand, if the state of affairs reveals a stage where one can positi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
