2015 (12) TMI 1020

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... order of the learned DCIT, Range 3(1), Mumbai (Assessing Officer) levying penalty u/s. 271(1)(c) of the Act. Your appellant submits that the order u/s. 271(1)(c) is illegal, bad-in-law and the same ought to be cancelled. 2. The learned CIT(A) erred in confirming the order of the Assessing Officer levying penalty u/s. 271(1)(c) of the Act amounting to Rs. 8,48,499 in respect of addition of Rs. 24,96,318 made to the total income on account of disallowance of Exhibitor Promotion expenses. The appellant submits that the penalty of Rs. 8,48,499 is wrongly levied and the same ought to be cancelled." 3. Assessee filed its return of income on 30.09.2009 declaring total income of Rs. 53,09,700/-. Assessment was made on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Exhibitor Promotion expenses and the Assessing Officer has levied penalty on account of the said addition to the total income as discussed above. During the year under consideration the assessee has claimed to have incurred expenditure of Rs. 1,68,26,530/- on account of Exhibitor Promotion expenses. The Assessing Officer held that the assessee has claimed expenditure relating to exhibitions held in China which is not related to the business operations of the assessee in India. Accordingly he disallowed Rs. 24,96,318/- on this account and levied penalty under section 271(1)(c) of the Act amounting to Rs. 8,48,499/- for the same. During the relevant financial year certain Exhibitor Promotion expenses were incurred by Deutsche Messe AG (DMAG),....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng that there is excess expenditure amounting to Rs. 24,96,318/- debited to the Profit & Loss Account of the assessee. As per Explanation 1 of section 271(1)(c) an assessee is said to have concealed particulars of its income in respect of any expense claimed in return of income. In this regard the stand of the assessee has been that the assessee has claimed certain expenditure which could not be accepted by Assessing Officer. 6.1 The provisions of section 271(1)(c) of the Act together with Explanation-1 there under, no principles of menserea is required for levy of such civil penalty. Levying penalty may not be justified in cases of explanation given is found bonafide and all the facts relating to the same and material to the computation....