2018 (2) TMI 1590

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....the penalty on the 5% disallowance of customer claim & defectives amounting to Rs. 43,24,615. In fact the assessee has neither concealed any income nor furnished inaccurate particulars of Income. 2. The Ld. CIT(A)-XII has wrongly upheld the penalty on the disallowance Rs. 12,67,949/- made on account of foreign travel. In fact the assessee has neither concealed any income nor furnished inaccurate particulars of Income." 3. Briefly stated the facts are that the assessee filed return of income declaring total income of Rs. 1,54,23,884/-. The assessment was completed u/s 143(3) on 15.12.2006 determining total income at Rs. 3,19,93,010/- against this order. The assessee had filed appeal which reached upto the stage of Tribunal and th....

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.... 5. We have heard the rival contention, perused the material available on record and gone through the orders of the authorities below. There is no dispute in this regard, the facts that the disallowance of expenditure is made purely on basis of estimation. This fact is no disputed by the revenue. The Hon'ble High Court in the case of CIT vs. Nokia India Pvt. Ltd. (supra) has held as under :- "6. It may be noted that in the next assessment year 2001-02, the total amount claimed by the assessee under the head "Provision for obsolescence of inventory" was Rs. 35,575/-. While the Assessing Officer disallowed the entire amount, the Commissioner of Income-tax (Appeals) reduced the disallowance to 25 per cent, thereof, amounting to Rs. 8....

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....t of which the penalty under section 271(l)(c) is to be levied. We, therefore, uphold the order of the learned Commissioner of Income-tax (Appeals) in deleting the penalty on this item also." 8. Looking at the reasoning given by the Income-tax Appellate Tribunal, nature of disallowance and the finding of the Assessing Officer/Commissioner of Income-tax (Appeals) making ad hoc disallowance of 25 per cent., we do not think any substantial question of law arises in the present appeals and the same are accordingly dismissed." 6. We find that the case laws as relied by the Ld. Departmental Representative do not apply on the facts of the present case and as such are distinguishable. We, therefore, respectfully following the judgment o....