2018 (5) TMI 999

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....ainst the order of the Ld. CIT(A)-18, New Delhi, dated 22nd September, 2017, for the A.Y. 2014-2015, challenging the levy of penalty under section 271(1)(c) of the I.T. Act, 1961. 2. Briefly, the facts of the case are that during the assessment proceedings the A.O. made addition on account of disallowance of deduction under section 57 of Rs. 16,60,121/-. The addition was made under the Head "In....

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....ose of Section 57(iii) of the I.T. Act and as to why the same be not disallowed as income from other sources is not related to the expenses so claimed above. Assessee had no explanation but to accept and agreed to the addition on account of disallowance of the same. The assessee was again provided an opportunity vide show cause notice dated 2nd December, 2016, to offer the explanation regarding th....

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....The A.O. relied upon the decision of Hon'ble Delhi High Court in the case of CIT vs. Zoom Communications Pvt. Ltd., 327 ITR 151 and levied the penalty under section 271(1)(c) of the I.T. Act on this addition. 3. The assessee filed the appeal before Ld. CIT(A). The assessee's written submissions are reproduced in the appellate order in which assessee briefly explained that expenditure was surren....

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....ions of the Ld. D.R. I am of the view that no interference is called for in the matter. The assessee declared income from other sources. Therefore, it is the duty of the assessee to explain that expenses related to income from other sources have any direct nexus with the earning of such income. The A.O. found specific fact against the assessee that assessee made a wrong claim of expenditure agains....