2018 (3) TMI 659

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.... 2011-12 & 2012-13 respectively. Since common issues are involved in both the appeals, these are heard together and decided by this common order. Assessee has raised grounds on the issue of levy of penalty u/s. 271(1)(c) of the Act and also raised additional grounds in AY. 2012-13 that the notice issued is not specific whether penalty is for concealment of income or for furnishing of inaccurate particulars of income. 2. Briefly stated, assessee-company is in the business of civil contract. There were survey operations on 16-09-2013 and during the survey, it was noticed that assessee had paid a certain 'coordination charges' in cash on various RA bills. When this was confronted, the Executive Director of assessee-company in the solemn state....

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....corded the following while disallowing the amounts: 2011-12: "6. The above contention of the assessee company is not acceptable. In the sworn statement, the directors of the assessee company, have categorically admitted that the coordination charges was paid in cash and 1.25% of the turnover on account of REC (Rural Electrification Corporation) will be admitted as income under the head coordination charges for AY 2011-12,2012-13 and 2013-14 in the name of the GIPL over and above the book results. In the sworn statement, they have not deposed that the coordination charges have been paid on actual payment received against RA bills. Therefore, the coordination expenses for the year under consideration is worked at Rs. 92,20,557/- (i.e. on....

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.... registered in the books of account as an expenditure under various heads. There is also no dispute that AO has considered a higher disallowance on the entire turnover of assessee, even though assessee statement indicates that the coordination expenses were only on REC project that too, on the actual amount received. He referred to the statement made to AO and the disallowance made, to submit that AO has disallowed more amount than what was actually spent by assessee, but considering that a statement was given, assessee has not preferred any appeal. It was submitted that assessee's acceptance of disallowance does not mean that assessee has concealed the particulars of income or furnished inaccurate particulars of income. 6. Ld.DR, however,....

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.... entire turnover reported by assessee in the books of account. Even though there is no dispute that assessee has spent certain moneys for 'coordination' while obtaining the bills, the disallowance is not exactly of the actual amounts supposed to have been paid like that. AO has disallowed more amount than what was admitted during the survey in the impugned assessment years. Even though the basis is survey statement, it cannot be stated that AO has strictly gone by the statement, as he has disallowed more amount, even though no such expenditure was claimed on the bills which are not received. Therefore, it has to be considered as mere disallowance of expenditure rather than any concealment of income or furnishing of inaccurate particulars. S....