TMI Blog2018 (4) TMI 1727X X X X Extracts X X X X X X X X Extracts X X X X ..... case that these expenses were genuinely , bonafdily, exclusively and wholly incurred for providing services to Tata Teleservices Maharashtra Limited . The matter need to be restored back to the file of the AO for fresh adjudication on merits in accordance with law . Needless to say that the AO shall provide proper and adequate opportunity of being heard to the assessee in accordance with the principal of natural justice. The onus is on assessee to prove that these expenses which were debited to Income and Expenditure Account against service charges received from Tata Teleservices Maharashtra Limited credited to Income and Expenditure Account , were genuinely, wholly, exclsuively and bonafidely incurred in relation to services rendered as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Commissioner of Income Tax (Appeals) has erred in law and in facts in confirming the order of Assessing Officer without complying with the principles of natural justice. 3. The learned Commissioner of Income Tax (Appeals) has erred in law and in facts in confirming penalty u/s 271(1)(C) of the Act at ₹ 33.060/-. 4. The appellant craves leave to add to, alter, amend and / or delete in all the foregoing grounds of appeal. 3. The assessee is a Co-operative Group Housing Society and has declared income from house property. The AO during the course of assessment proceedings u/s. 143(3) r.w.s 143(2) observed that the assessee has entered into two agreements with Tata Teleservices Maharashtra Ltd. both dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e terrace and space in and around the said building. ii) Use and benefit of the lifts and/or service elevators, iii) Benefit of Security Guard System, iv) Use the common lighting within the said building. In the opinion of AO, the said income is also chargeable to tax at the gross level of ₹ 1,50,000/- under the head income from other sources‟ because Tata Teleservices Maharashtra Limited has agreed to pay for maintenance fees for facilities provided. The AO brought to tax income of ₹ 2,50,000/- to tax as income under the head income from other sources‟ as against income of ₹ 70,000/- declared by the assessee as income under the head income from house property‟ , vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been mentioned. It is also stated that the service utilized by the company is on account of electricity charges, lift etc, but no details have been kept to show, as to what extent these common facilities and services have been used to establish any ratio between the use of service and facilities vis-a-vis the compensation received by the appellant on the said account. The appellant's action in claiming various expenses against the above receipt apparently is to show that the said receipt is in the nature of reimbursement, from which it is clear that appellant has made an attempt to conceal its real income and thereby evade tax. I, therefore uphold the levy penalty in the case of the appellant. In this regard, I also rely on the order da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty order that the appellant has concealed and filed inaccurate particulars of its income for the assessment year under consideration and confirm the penalty levied upon the appellant and dismiss the grounds of appeal. 7. In the result, appeal is dismissed. 4. The assessee has come in an appeal before the tribunal against the appellate order passed by learned CIT(A) confirming/sustaining of the penalty levied by the AO u/s 271(1)(c) . The Secretary/Authorised signatory of the assessee who has signed and verified form no. 36 appeared in person before the tribunal. It was submitted on behalf of the assessee at the outset that proper opportunity was not given by the authorities below to the assessee to prove its case and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. The dispute is w.r.t. service charges of ₹ 1,50,000/- received by assessee from Tata Teleservices Maharashtra Ltd. for providing various services such as lift, security guard etc. . The assessee has credited said income of ₹ 1,50,000/- to Income Expenditure Account and debited expenses incurred in relation to the earning of the said income to Income Expenditure account . The AO has brought the said income to tax at gross level of ₹ 1,50,000/- under the head income from other sources‟ and no benefit of expenses were allowed which was claimed to be incurred in relation to the earning of said income as the assessee could not show that these expenses were incurred in connection with the services for which serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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