TMI Blog2018 (3) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... a mere disallowance, consequent to survey operations conducted. The case does not fall either under the head ‘concealment of income’ or under ‘furnishing of inaccurate particulars’ so as to attract penalty under Sec.271(1)(c). As the facts indicate that there is no need for levy of penalty on mere disallowance of a certain claim made in the P&L A/c. - Decided in favour of assessee. - ITA 843/Hyd/2016 And 821/Hyd/2017 - - - Dated:- 19-1-2018 - SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER For The Assessee : Shri V. Raghavendra Rao, AR For The Revenue : Shri Rajeev Benjwal, DR ORDER PER B. RAMAKOTAIAH, A.M. : These two appeals are by assessee against the confirmation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... segregate, assessee s Managing Director, admitted to offer the above expenditure as income in the impugned assessment years. During the assessment proceedings, for which returns were already filed, assessee furnished a note on coordination expenses in which it was stated that the actual payment received against RA bills was ₹ 38.64 Crores and expenditure incurred on that was ₹ 51,84,760/- in AY. 2012-13 and ₹ 37.54 Crores in AY. 2011- 12 and expenditure was ₹ 32,60,810/-. AO, however, considered the entire receipts of P L A/c [rather than the RA bills pertaining to REC) on which amounts have been received and disallowed an amount of ₹ 48,80,472/- in AY. 2012-13 as against ₹ 41,58,760/- stated to have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance u/s. 43B also in AY. 2011-12. He has initiation proceedings u/s. 271(1)(c) without recording any satisfaction separately. 4. Assessee contended before the Ld.CIT(A) that these expenditures were actually incurred and assessee has agreed for addition in the course of survey statement, as it was difficult to identify a particular expenditure incurred by assessee as the total expenditure was in crores of rupees. No appeal was preferred only because the expenditure involved is only 1.25% on the actual payment received, which was booked in the books of account in cash. It is also submitted that assessee neither concealed the income nor furnished any inaccurate particulars of income and mere disallowance of expenditure claim does not warra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and also on the judgment of CIT Vs. Atul Bindal (SC) to support the contentions of Revenue. 7. Ld. Counsel, however, submitted that the penalty notice has not specified whether the penalty was for concealment of income or for furnishing of inaccurate particulars and accordingly, the penalty is not warranted and relied on the judgment of the Hon ble jurisdictional High Court in the case of The Principal CIT, Visakhapatnam vs. Baisetty Revathi (ITTA No.684 of 2016, dated 13.07.2017). 8. We have considered the rival contentions and perused the order of authorities. There is no dispute that during the survey operations, assessee was found to have been spent certain coordination expenses, which are booked as other expenditure in the book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indication that the disallowance/addition made by the AO falls in any of these categories stated above, as there is no discussion even about initiation of penalty proceedings. The order of AO indicates that it is a mere disallowance, consequent to survey operations conducted. In these circumstances, we are of the opinion that the case does not fall either under the head concealment of income or under furnishing of inaccurate particulars so as to attract penalty under Sec.271(1)(c). 8.1. Both the parties have relied on various case law, which we do not intend to repeat here, as the facts indicate that there is no need for levy of penalty on mere disallowance of a certain claim made in the P L A/c. Assessee s grounds are allowed. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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