2011 (11) TMI 205

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....resh and directing the assessee to furnish full details of the travelling expenses." 2. The respondent-assessee had filed return declaring loss of Rs. 9,81,50,987/- on 27.11.2003 for the assessment year 2003-04. 3. The Assessing Officer vide order dated 30.03.2006 computed the total income of the assessee at a loss of Rs. 9,33,25,287/-. The Assessing Officer held that the respondent was engaged in the business of manufacturing, trading and export of rice and had shown negative GP rate as compared to the Assessment Year 2001-02. A questionnaire was issued to the assessee why GP rate should not be enhanced as a similar addition was made in the earlier years. There was no response of the assessee and, therefore, the Assessing Officer applied....

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....cannot be equated with furnishing of inaccurate particulars of income and/or the concealment of income. 6. On the appeal filed by the Revenue, the Income Tax Appellate Tribunal in respect of the foreign tour expenses has directed as under:- "....So far as disallowance of traveling expenses of Rs. 11.48 lac is concerned, the AO has asked the assessee to submit supporting details/the documents to prove that expenditure was incurred for purpose of business, due to absence of the assessee before the AO no such details could be furnished. Therefore AO imposed the penalty with reference to the disallowance of traveling expenses. The CIT(A) has deleted the penalty by observing that failure to file justification of conducting the foreign tour by ....