TaxTMI 
TaxTMI 
2015 (12) TMI 613
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....the case are that the assessee-company is engaged in the business of construction of infrastructure projects, mainly, water supply. It has filed its return of income on 24.10.2005 declaring a total income of Rs. 45,94,650/-. The case of the assessee was selected for scrutiny assessment and assessment order under section 143(3) of the Act was passed on 17.12.2007. 4. In response to the notice, the assessee has filed written submissions. For the purpose of this penalty, it is pertinent to take note of the following details submitted by the assessee in tabular forms: Sr. No. Particulars Addition made by the ld.AO Additional upheld by the ld. CIT(A) Addition upheld by the Hon'ble ITAT. 1. Disallowance o....
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....pay by way of penalty. (i)and (Income-tax Officer,)** ** ** (iii) in the cases referred to in Clause (c) or Clause (d), in addition to tax, if any, payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or fringe benefit the furnishing of inaccurate particulars of such income or fringe benefits: Explanation 1- Where in respect of any facts material to the computation of the total income of any person under this Act, (A) Such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the CIT to be fal....
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....nation I to section 271(1)(c) postulates two situations; (a) first whether in respect of any facts material to the computation of the total income under the provisions of the Act, the assessee fails to offer an explanation or the explanation offered by the assessee is found to be false by the Assessing Officer or Learned CIT(Appeal); and, (b) where in respect of any fact, material to the computation of total income under the provisions of the Act, the assessee is not able to substantiate the explanation and the assessee fails, to prove that such explanation is bona fide and that the assessee had disclosed all the facts relating to the same and material to the computation of the total income. Under first situation, the deeming fiction would ....
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....payment of Rs. 70,000/- through account payee cheque. The assessee has claimed deduction of Rs. 1,56,337/-. The payment except cheque payment has been disallowed. The reason for disallowance is that Shri Jethawa had denied payment from the assessee. The stand of the assessee is that, at the first instance, Shri Jethawa had contended that his books were destroyed in flood of 2006, and therefore, he has no details. The second amount is disallowance of Rs. 11,293/- which is in respect of sub-contractor, Pratik Construction. The assessee contended that meager amount was involved, therefore, it did not put much energy in locating this assessee. On due consideration of the above facts, we are of the view that the assessee has made payment of Rs. ....