TMI Blog2022 (7) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... s 271(1)(c). Hence, we do not find any infirmity in the order of ld. CIT (A). Appeal by the Revenue stands dismissed. - ITA No.8567 /Del./2019 CO No.7/Del/2020 (in ITA No.8567 /Del./2019) - - - Dated:- 20-7-2022 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER And SHRI YOGESH KUMAR US, JUDICIAL MEMBER ASSESSEE BY : SHRI PANKAJ SARAOGI, CA REVENUE BY : MD. GAYASUDDIN ANSARI, SENIOR DR ORDER PER SHAMIM YAHYA , ACCOUNTANT MEMBER : This appeal by the Revenue and cross objections by the assessee is directed against the order of the ld. CIT (A)-4, New Delhi dated 21.08.2019 pertaining to assessment year 2015-16. 2. The grounds of appeal raised by the Revenue read as under :- Whether on the facts and in the circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat since the assessee is following project completion method, these expenses cannot be allowed as revenue expenditure and deserve to be capitalized. The assessee did not file appeal against these disallowances. The AO had initiated penalty proceedings u/s 271(l)(c) for filing Inaccurate particulars of income in respect of all the above disallowances. However, the AO, during penalty proceeding, imposed penalty on disallowances as mentioned in S.No. 2 above only i.e. on disallowance of advertisement expenses (Rs.1,66,62,664/-) and disallowance of brokerage commission expenses (Rs.1,38,13,592/-). 5. Before the ld. CIT (A), assessee submitted that books of accounts are subject to audit and the appellant has followed Accounting Standard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g work-in-progress would get enhanced by this addition which would become part of cost as and when sales are made. This is not the case of the AO that expenses claimed by the appellant is bogus. 6.8 In any case, it is clear that all the material facts relating to advertisement and commission expenses were on record and mere disallowances of the claim, which is not sustainable in law, by itself, will not amount to furnishing of inaccurate particulars of income as held in a number of judicial decisions. 6.9 The High Court of Bombay in the case of CIT-14, Mumbai Vs. Nalin P Shah (HUF), [2013] 40 taxmann.com 86 (Bombay), following the decision of Apex Court in the case of CIT vs. Reliance Petroproducts Pvt. Ltd. [2010] 189 taxmann 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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