TaxTMI 
TaxTMI 
2018 (4) TMI 13
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....the penalty levied by the Assessing Officer. 2) The Learned CIT (Appeals) erred in not noticing the correct factual position that the first assessment order dated 31/12/1998, did not indicate the satisfaction of the officer for levying the penalty and also further did not indicate whether the same was for filing inaccurate particulars or concealment as required by law. 3) The Learned CIT (Appeals) erred in law and in facts concluding that the penalty notice dated 31/12/98 specified whether the same was being issued for inaccurate particulars or for concealment by mainly putting a tick mark relevant clause was not specified. 4) The Learned CIT (Appeals) erred in law not noticing the fact that the assessment order dated 31/12/98 was ....
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....he orders of DRT and High Court of the counter parties. Hence it is submitted there was no concealment of income as indicated by the assessee. But merely inaccurate particulars of income as the assessee was unable to produce counter parties who had already close down at the time of first hearing of Hon'ble ITAT. Hence it is prayed penalty may be quashed. 2. We have heard the Ld. Authorized Representative (AR) of the assessee and Ld. Departmental Representative (DR) for the Revenue and perused the material available on record. At the outset of hearing the ld. AR of the assessee submits that the Assessing Officer levied the penalty on two disallowances. The disallowances consist of Rs. 35,86,519/- on account of commission on sale and se....
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.... assessee-company claimed the travelling expenses of Rs. 4,22,322/- on account of foreign travel of Mrs. Gauri Sheth W/of Vice- President Mr. Dinesh Sheth and Consultant Rajendra Shaha. The Assessing Officer disallowed the 1/3rd of travelling expenses. In fact, travelling expenses were disallowed on adhoc basis. We have further noted that the disallowance on account of commission on sale (commission expenses) was deleted by Tribunal in ITA No. 5549/Mum/2010 dated 11.10.2017, with the following observations: "7. We have considered the rival submissions of the parties and have gone through the orders of authorities below. In order to constitute an expenditure falling within the scope of section 37(1) of the Act, the assessee (payer) must fu....
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.... Nov 2001 furnished the details of transaction, PAN Number of Radhika Synthetics Ltd. and the fact that Radhika Synthetics Ltd. was in liquidation and the assessee was not in a position to produce any party before Assessing Officer. It was also observed that assessee had contended that the Directors of Radhika Synthetics Ltd. have no relationship whatsoever with the Directors of assessee company. On the basis of above referred observation, the learned Commissioner (Appeals) concluded that initially the claim of assessee was rejected by the Assessing Officer that assessee failed to prove the nexus of commission payment with the business of assessee or that the same had no link with the sale and purchase of fabric during the year. The origina....
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.... Shri Shivkumar Mishra, Director of assessee-company. Shri Shivkumar Mishra contended in his affidavit that the assessee company have dealing with Radhika Synthetics Ltd. through its Director Shri Manohar Khambekar and that said dealings were through their broker M/s Spectrum Synthetics Ltd. It was further contended in the affidavit that that neither the family members of Seth family, who were promoters of assessee-company nor any of the present Directors have any relationship in the nature of uncle or nephew with Radhika Synthetics Ltd. The affidavit does not contain any reference regarding the relationship with the Directors of Spectrum Synthetic Ltd. As per verification on the list of documents/paper book signed by S.S. Mishra, the affid....
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.... (iv) it should not be in the nature of personal expenses of the assessee, (v) it should have been made wholly and exclusively for the purpose of business and (vi) it should be in the nature of capital expenditure. In our view, the assessee has discharged the primary onus lies upon it by furnishing the nature of business, details of transaction and the expediency of business. Further, the assessee has claimed initially that assessee-company was new in the line of business fabrics. Hence, Spectrum Synthetics Pvt. Ltd. was acting as their agent. The Assessing Officer has not brought any material about the relationship of assessee-company with the company with whom assessee made business or about the agent company. Further, the Assessing Offic....