2015 (9) TMI 1286

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....levy of penalty of Rs. 2,29,891/- u/s.271(1) (c) of the Act. 2) The appellant reserves right to add, alter and withdraw of any grounds of appeal. 2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as "the Act") was framed vide order dated 13/12/2007, thereby the Assessing Officer (AO in short) made addition on account of adjustment u/s.145A of the Act with regard to difference in closing stock and unutilized MODVAT amounting to Rs. 1,94,760/-, disallowance of foreign travel expenses amounting to Rs. 1,35,750/- and disallowance to bonus payment to labourers amounting to Rs. 2,97,500/-. The AO on these add....

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....ough the orders of the authorities below as well as the decision of the Tribunal. The AO imposed penalty u/s.271(1)(c) of the Act on addition made on account of adjustment u/s.145A of the Act, disallowance of foreign travel expenses and disallowance to bonus payment to labourers. Out of these three items; one item, i.e. the disallowance of foreign travel expenses has been confirmed by the Coordinate Bench in quantum appeal and addition made on account of disallowance of bonus payment to labourer of Rs. 2,97,500/- has been deleted in ITA No.2991/Ahd/2008 for AY 2005- 06 dated 02/11/2012. So far as the imposition of penalty for addition made on account of adjustment u/s.145A of the Act and foreign travel expenses are concerned, the Coordinate....

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....ave taken note to the recent decision of the Hon'ble Apex Court cited by the Ld.AR in the case of Reliance Petro Products Pvt. Ltd. reported in 322 ITR 158 (S.C.), wherein it was held as under:- "A glance at the provisions of section 271(1)(c) of the I.T. Act 1961, suggests that in order to be covered by it, there has to be concealment of the particulars of the income of the assessee. Secondly the assessee must have furnished inaccurate particulars of his income. The meaning of the word 'particulars' used in section 271(1)(c) would embrance the details of the claim made. Where no information given in the return is found to be incorrect or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particular....

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....r. Murli Adnani, who was neither a Director nor an employee of the company. The assessee had clarified that Mr. Murli Adnani was a promoter/shareholder of the company and had sourced many buyers/suppliers for the company. He was helping the company in its business and the company had incurred these travel expenses of Mr. Murli Adnani for the purpose of business of the assessee company. However, ld. A.O. disbelieved the contention of the assessee and made the disallowance. This disallowance of expenses was confirmed by the ld. CIT(A) and, the ITAT. Ld. A.O. thereafter levied penalty on this addition invoking section 271(1)(c) of the Act which was subsequently confirmed by the ld. CIT(A). 11. The ld. A.R. forcefully argued that the e....