TaxTMI 
TaxTMI 
2016 (11) TMI 1052
X X X X Extracts X X X X
X X X X Extracts X X X X
.... On the facts and in the circumstances of the case and in law, Ld CIT (A) failed to appreciate that the claim of the appellant was bonafide and not having any malafide intention to defraud revenue. 3. The Ld CIT (A) ought to have appreciated that there was no concealment of any income or particulars in any manner within the meaning of provisions of section 27(1)(c) of the Act. 4. Without prejudice, on the facts and circumstances of the case, the Ld CIT (A) failed to appreciate that the claim was bonafide and debatable." 2. Briefly stated relevant facts of the case are that the assessee is a Co-operative Housing Society (CHS) and filed the return of income declaring the total income of Rs. 68,784/-. AO completed the assessment u/s 143(....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ding, round the clock security watch and ward, access charges, storage charges etc. Assessee submitted that these are the amounts incurred by the assessee which were reimbursed by M/s. Deesha and therefore, the said reimbursements do not constitute the income of the assessee. Assessee claimed to have spent Rs. 2,64,000/- for erection of scaffolding; Rs. 10,58,629/- towards painting two layers of painting on the society building and Rs. 77,370/- being cost of material and other accessories. AO also perused the two agreements ie one for the sum of Rs. 1 lakh and the other for the sum of Rs. 14 lakhs and noticed that the said agreements constitute 'self serving document' to suite the assessee's attempt to not to disclose Rs. 14 lakhs for taxat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s only for 2 months. He also underlined that the finding of the Tribunal on the commission, where the Tribunal held as under:- "The affairs are so arranged that the cost to be incurred by the society for their regular maintenance was borne by the said company and receipts were bifurcated into two agreements." 4. Tribunal also noted that the maintenance of the scaffolding and the relate structures are part and parcel of the regular maintenance and therefore, incurring of the expenditure on painting, watch and ward etc has no relevance on advertisement. Therefore, these cannot be allowed u/s 37(1) or section 57 of the Act. Tribunal dismissed the alternative contentions also. Relying on the various decisions discussed in para 2.4.14 to 2.4.....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... could not justify why the entire building has to be painted at the cost of M/s. Deesha's expenditure without offering the said receipts to tax. No evidence is brought forth on record / before me as the specific expenditure incurred for the advertisements of the company by M/s. Deesha. There is no relevant material to demonstrate as to why the fees to BMC amounting to Rs. 3,75,360/- was paid when the rental income received by the assessee is only Rs. 50,000/-. 6. On the other hand, Ld DR for the Revenue relied heavily on the order of the ITAT, CIT (A) and the AO for facts and legal propositions. 7. After hearing the Ld DR and on perusal of the orders of the Revenue Authorities as well as the relevant material placed on record, I find, it ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is not forthcoming with all the facts in this regard. Therefore, I am of the opinion that the second agreement constitutes 'self-serving document'. The judgment in the case of Reliance Petro Products Ltd ( 322 ITR 158) (SC) will not help the assessee as the facts are entirely different. We have also perused the contents of paras 2.4.20 and 2.4.21 of the CIT (A)'s order and find they are relevant. Considering the importance of the said paras for the sake of completeness of this order, the same are extracted as under:- "2.4.20. In view of the above factual and legal analysis, I do not find any infirmity in the action of the Ld AO and accordingly, confirm the act of imposition of penalty by the Ld AO especially keeping in view the following c....