2015 (5) TMI 902

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.... disadvantage of the assessee in completing the assessment at a loss of Rs. 8,09,74,290/-. The variance occurred as a result of two additions made in the assessment proceedings of Rs. 5,92,192/- and Rs. 19,85,375/-u/s 40(a)(i) on account of non-deduction of TDS for travelling bills of Prof. Y.Kato, who visited assessee concern for imparting training; and addition by way of disallowance of foreign travel expenses of the Managing Director for want of documentary evidence respectively. The assessee challenged these additions in the quantum proceedings and the appeals consistently failed before the CIT(A) as well as the ITAT on the issue of travelling expenses of the Managing Director. However the addition of Rs. 5,92,192/- out of foreign trave....

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....e addition of Rs. 19,85,375/- as personal in nature. The addition made by the AO was confirmed by the ld. CIT(A) and Hon'ble Tribunal which establishes that the assessee has concealed income by way furnishing inaccurate particulars in the form of claim of foreign travel expenses of Rs. 19,85,375/- which was actually incurred in connection with the personal trip of the Managing Director. No documents/evidence has been produced at any stage to establish that even a single meeting took place for business purpose between the Managing Director and management of m/s Maval Manufacturing Inc. even though 8 such trips were made and which establishes that any negotiation took place between the respective and prospective customers." 3. The asse....

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....t be the ground for levying penalty. The argument advanced as per judicial precedent in the penalty proceedings it was submitted has to be independently considered and cannot be ignored on the same reasoning as in the quantum proceedings. The facts it was submitted have to be seen in the proper perspective wherein giving due care and consideration to the realities and facts on record. The assessee it was submitted is not a private limited company consisting of himself and some close family members. Inviting attention to the details filed on record where particulars of the persons who were beneficial owners of the equity share holding in the assessee company not less than 10% of the voting power at any time from 01.04.2005 to 31.03.2006 were....

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....curate particulars. Accordingly the penal action on facts it was submitted should not have been attracted. Referring to the assessment order it was submitted that the assessee company is a manufacturer of ball joints for steering systems used mainly in manufacturing of automobiles and the visit in this background by a person of the rank of the Managing Director of the company being nominated to represent the interests of the assessee company and visiting its old customer in regard to satisfy the assessee and the customer about the quality, supply and other issues on which satisfaction of the customer is necessary for the goodwill and extension of the company it was submitted cannot be discarded. It was his submission that no report is requi....

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....he addition. 7. The Ld. Sr. DR in reply relying upon the findings in the quantum proceedings which has been reproduced in the penalty proceedings submitted that evidently till date no evidence in support of the details of travel by way of any cogent evidence has been filed by the assessee accordingly the impugned order deserves to be upheld. 8. We have heard the rival submissions and perused the material available on record including the findings in the quantum proceedings and the judicial precedent relied upon. On a cumulative consideration thereof we are of the view that no doubt the assessee failed in the quantum proceedings right up to the ITAT for want of corroborative evidence to support its claim, however considering the argume....