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TMI Blog2017 (2) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... t. As both the appeals are arising out of assessment order for AY 2009-10, hence, both the appeals were heard together and are decided by common order to avoid the conflicting decision. 2. First, we shall take up ITA No. 7492/Mum/2012. The assessee has raised the following grounds of appeal: 1. On the facts and circumstances of the case as well as in Law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in disallowing the claim of expenses of Rs. 55,27,162/- on the alleged plea that the company is not engaged in any business activities during the year under consideration, without considering the facts and circumstances of the case. 2. On the facts and circumstances of the case as well as in Law, the Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. Authorized Representative (AR) of the assessee and ld. Departmental Representative (DR) for the Revenue and perused the material available on record. The Ld. AR of the assessee argued that the disallowance made by assessee is not in accordance with the provisions of section 14A read with Rule 8D. The ld. AR of the assessee further argued that the AO is entitled to disallow only the amount which is attributable for earning of the exempt income and the remaining amount has to be disallowed in accordance with the provisions of section 37 of the Act. On the other hand Ms. Pooja Swarup the ld. DR for the Revenue strongly supported the order of authorities below. The ld DR for the revenue shown us that that in the Profit & Loss Account, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, without considering the facts and circumstances of the case. 7. The Ld. AR of the assessee argued that assessee claimed the deduction of Rs. 55,27,162/- which consists of Administrative Expenses, Financial Expenses and depreciation, all the expenses were disallowed by AO in the assessment order. The assessee has not concealed any income nor furnished any inaccurate particular of income. The ld. AR of the assessee further submitted that mere claim of any deduction which is found to be not admissible or untenable under the law does not entitled the AO to levy the penalty for concealment of income. The assessee has not concealed any income and there was no occasion for filing inaccurate particular. The legal claim made by assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee has no business activities during the relevant year and assessee claimed huge expenditure by putting such unsubstantiated claim of expenditure. Thus, willfully sought to evade the tax and levied the minimum penalty @ 100% of the tax sought to be evaded and works out the penalty at Rs. 17,08,000/-. The ld. CIT(A) confirmed the penalty concluded that assessee earned the dividend income which was claimed as exempt which is to be assessed under the head "Income from Other Sources". However, assessee claimed business expenses of Rs. 55,27,162/-. There was no business activity carried out by the assessee during the year under consideration and thus, the assessee made the false claim of expenses. 9. We have carefully gone through t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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