TMI Blog2019 (5) TMI 1325X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute regarding the genuineness of expenditure and has held that disallowance was purely on estimate basis. Thus, when the genuineness of the payment is not doubted and 90% of the expenditure has been allowed, penalty cannot be imposed u/s 271(1)(c) on the disallowance of balance 10% made purely on estimate basis. - Decided against revenue. - ITA no.3384/Mum./2017 - - - Dated:- 22-5-2019 - Shri Saktijit Dey, Judicial Member And Shri Manoj Kumar Aggarwal, Accountant Member For the Assessee : Shri Bhupendra Shah For the Revenue : Shri Abhi Rama Karthikeyan ORDER PER SAKTIJIT DEY. J.M. The aforesaid appeal has been filed by the Revenue challen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalty order so passed, the assessee preferred appeal before the first appellate authority. 3. In the course of appeal proceedings, learned Commissioner (Appeals) found that out of the deduction claimed of ₹ 1,78,52,082, the Tribunal while deciding the quantum appeal of the assessee, had allowed 90% and sustained the disallowance made by the Assessing Officer to the extent of 10% of sub brokerage payment. Since the disallowance of sub brokerage payment to the extent of 10% was on estimate basis, learned Commissioner (Appeals) deleted the penalty imposed with regard to the addition made on account of sub brokerage payment. However, he confirmed the penalty imposed on the interest on brokerage amounting to ₹ 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal, the Revenue went in appeal before the Hon'ble Jurisdictional High Court under section 260A of the Act. While deciding the appeal of the Revenue, the Hon'ble Jurisdictional High Court not only sustained the decision of the Tribunal in allowing 90% of the sub brokerage payment but has also observed that there is no dispute regarding the genuineness of expenditure and has held that disallowance was purely on estimate basis. Thus, when the genuineness of the payment is not doubted and 90% of the expenditure has been allowed, penalty cannot be imposed under section 271(1)(c) of the Act of the Act on the disallowance of balance 10% made purely on estimate basis. Therefore, finding no infirmity in the order of the learned Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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