TaxTMI 
TaxTMI 
2016 (12) TMI 168
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....ellant filed its return of income on 02.12.2003 declaring loss of Rs. 3,80,83,680/-. The assessment u/s. 143(3) was completed on 23.12.2005 at total loss of Rs. 3,62,83,470/-. Subsequently, the ld. CIT, Delhi-IV, New Delhi revised the assessment order u/s. 263 of the Act on 28.03.2008. Pursuant upon this order u/s 263, assessment was made u/s. 143(3) read with section 263 on 24.09.2008, whereby the deduction of Rs. 73,60,000/- claimed by the assessee as revenue expenditure u/s. 37(1) incurred for getting the hotel premises vacant, was disallowed holding the same as capital expenditure. The appellant did not prefer any appeal against this assessment order challenging the impugned disallowance. Later on, penalty proceedings u/s. 271(1)(c) of ....
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....the assessee does not amount to concealment or furnishing inaccurate particulars of income. 4. On the other hand, the ld. DR supporting the orders of the authorities below, submitted that the appellant had furnished inaccurate particulars of income by making the false statements before the authorities below. It was submitted that in order to take benefit of illegitimate claim of deduction u/s. 37(1) of the impugned amount, the appellant had given wrong statement in the return itself that he is running the hotel business whereas under the agreement of demerger, the appellant was not authorized to do the hotel business. It is also borne out on record, that the assessee had not started any other business, but the hotel premises was demolished....
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....ountant of the assessee advised him to do so, does not carry any weight without any evidence in this regard. It is worthwhile to note that the assessee vide letter dated 08.08.2008 given to the AO, has stated that the business of hotel stood discontinued immediately on taking over the hotel premises, whereas in column No. 15 of the return regarding the nature of business or profession, the appellant has written "running of hotel business". Such a statement given by the assessee is false and contradictory to the statements made before AO vide letter dated 08.08.2008. Moreover, in our considered opinion, it is not a case where two opinions about the applicability of section 37(1) or deductibility of impugned expenditure u/s. 37(1) were possib....