TaxTMI 
TaxTMI 
2013 (9) TMI 1080
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....n tour of a foreign national respectively. While making the disallowance of Rs. 1.5 lakhs on membership of a club NSCI, it was observed by the AO that it is a pure personal expense of the assessee which does not have any business connection at all. As regards the disallowance of travelling expenses on stay and travelling of one Shri. J. John, it was held by the AO that no business connection with Shri John has been proved inspite of various opportunities given to the assessee. However, verbally it was argued that Shri John is a high officer in some foreign company and he was guest whom the assessee has taken to Baroda for business dealing. AO held that this is also a pure personal expense of the assessee incurred over Shri J John. According....
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....ver, the details called for were also submitted. The Assessing Officer did not find the details or particulars wrong or incorrect. After going through the details, the Assessing Officer has come to a conclusion that expenses are of personal nature. Therefore, there is no concealment nor filing of any inaccurate particulars on part of the assessee. (iii) Bonafide belief It is a settled law laid down by the Jurisdictional High Court in the case of Otis Elevator Co. (India) Ltd. (195 ITR 682) that club membership fee is allowable expenses under section 37(1) of the Act and it is not in the nature of capital nor in the nature of personal expenses. The Assessee should have claimed entire Rs. 6,00,000 as expenses and if he would have conteste....
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....cability of Section 271(1)(c) of the Act, in a situation where a claim of deduction is disallowed in the assessment. Here also, the Pune Tribunal has held that where a claim is accepted or rejected has nothing to do with filing of inaccurate particulars of income. Raising a legal claim, even if it is ultimately found to be legally unacceptable, cannot amount to filing of inaccurate particulars of income. The Hon'ble Tribunal has further held that concealment of an income by an Assessee, implies that person concealing income is hiding, covering up or camouflage an income something which essentially require a concise efforts. In the present case the Assessee Company has acted in a transparent and straightforward manner. The Profit & Loss Acco....
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....a ground for levying penalty. In the present case the claim is not even erroneous. (viii) CIT Vs Dèeksha Holidays Ltd. (186 TAXMAN 183(Delhi) Here also the Hon'ble Delhi High Court has very categorically held that any deduction claimed by an Assessee which has not been found by the Assessing Officer as bogus or false and the Assessee has disclosed all the facts, a mere disallowance of such expense would not have justified for levy of penalty. (ix) Strides Arcolab Ltd. - 40 SOT 398(Mum) Here also the Hon'ble Mumbai Tribunal has held that merely because the Assessee has made a claim which has not been accepted by the Assessing Officer, it would not amount to furnishing of inaccurate particulars of income by an Assessee so as to....
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....sallowance of club membership in A.Y. 2005-06 and that tantamount to furnishing of inaccurate particulars. Further with reference to disallowance of foreign travel expenditure claimed, he upheld the view of the AO that this is personal expenditure and so, penalty in warranted. 5. When the case is taken up for hearing, none appeared on behalf of assessee. Hence, the case is heard ex parte appellant. Ld. DR made submissions. 6. After considering the fact of the case, we are of the opinion that penalty u/s 271(1)(c) is not warranted. With reference to the club membership fee, Assessee paid an amount of Rs. 6 lakhs as membership fee. On the basis of decision of Jurisdictional High Court in the case of Otis Elevator Co. (India) Ltd. (195 ITR 6....