2014 (7) TMI 79

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.... confirming the penalty u/s. 271(1)(c) of the income tax act, without looking into the merits and facts of the additions/ disallowances made by the Assessing Officer. 3. Under the facts and circumstances of the case, the Ld. Hon. CIT(A) has not justified in holding that the appellant ahs concealed the income and furnished inaccurate particulars of income and thereby confirming the penalty u/s. 271(1)(c) of the income tax act, to the extent of Rs. 12, 23, 414/-. 4. The appellant craves leave for any addition, deletion or amendments in the grounds of appeal, till the disposal of appeal. 2. The effective ground of appeal filed by the assessee deals with confirmation of penalty order passed by the Assessing Officer (AO) u/s. 271(1)(c) of the....

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....purposes/giving interest free advances, that claim of deduction in respect of interest expenditure was incorrect and wrongful , that it had failed to comply with the provisions of Act, that it has suppressed its income to the extent of Rs. 39. 59 lakhs, that the return was filed by the assessee after due application of mind, that competent person had verified the declaration about correctness and truthfulness of the return, that had the case not been selected for scrutiny the wrongful claims would have gone un-deducted. He referred to explanation 1 to section 271(1)(c) and relied upon the cases of K. P. Madhusudan(251 ITR 99 and Raghuvir Soni (258 ITR 239). Finally, he held that assessee-company had concealed its income to the extent of Rs.....

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....f the matter. In absence of the assessee or his representative, we are deciding the matter on the basis of available material. We find that an addition of Rs. 22. 64 lakhs was made by the AO under the head 'Loss on sale of vehicles and loss by theft' , that the AO had issued a notice to the assessee in this regard and had asked it to explain the reasons for not adding the above item to the computation of total income. It was only after letter issued by the AO, that assessee-company offered the said amount for taxation. Similarly, claim of commission payment (Rs. 7. 60 lakhs) and interest (Rs. 9. 35 lakhs), made by the assessee, were found to be against the clear mandate of the provisions of the Act by the AO. During the penalty proceeding....