Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, JM & SHRI MANOJ KUMAR AGGARWAL, AM
Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year [AY] 2012-13 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-37 [CIT(A)], Mumbai, Appeal No.CIT(A)-37/IT-560/ITO-25(1)(4)/15-16 dated 02/01/2017 qua confirmation of penalty u/s 271(1)(c) for Rs.44,859/- as levied by Ld. AO vide penalty order dated 24/09/2015. The assessment ITA.No.1811/Mum/2017 Vids Overseas Assessment Year-2012-13 for impugned AY was framed by Ld. Income Tax Officer-25(1)(4), Mumbai [AO] u/s 143(3) of the Income Tax Act, 1961 wherein the assessee has been saddled with quantum additions of Rs.1,44,720/- which is adhoc addition to account for personal element in various expenses as claimed by the assessee during impugned AY. Another disallowance of Rs.563/- has been made u/s 14A. These additions have attained finality since the assessee has not contested the same any further. Against these additions, the assessee has been saddled with impugned penalty of Rs.44,859/- which, upon confirmation by Ld. first appellate authority, is under appeal before us.
The Ld. Authorized Representative [AR] for assessee, Shri. Gaurav Kabra contested the penalty which has been controverted by Ld. Departmental Representative [DR], Ms. Pooja Swaroop.
We have carefully heard the rival contentions and perused relevant material on record. Upon due consideration, we find that the assessee has suffered adhoc disallowances against various expenses as claimed by him. Nevertheless, there is no furnishing of inaccurate particulars or concealment of income which warrant imposition of penalty u/s 271(1)(c). Mere adhoc disallowance of expenses, in our opinion, do not attract the penalty unless it is shown that any of the condition viz. furnishing of inaccurate particulars or concealment of income as envisaged by Section 271(1)(c) is fulfilled. The ratio and principles laid down in Hon’ble Supreme Court rendered in CIT Vs. Reliance Petroproducts Pvt. Ltd. [2010 322 ITR 158] squarely applies to the facts of the case and therefore, we delete the impugned penalty 4. Resultantly, the assessee’s appeal stands allowed.
ITA.No.1811/Mum/2017 Vids Overseas Assessment Year-2012-13 Order pronounced in the open court on 05th September, 2018.