2019 (1) TMI 33

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....ic excavators which primarily include sales of machinery, spare parts, after sales service, and servicing of hydraulic excavators in India. For the Asstt. year 2008-09, assessee filed the return of income on 30.9.2008 declaring a loss of Rs. 1,12,02,974/- . During the assessment proceedings, learned AO made an addition of Rs. 7,33,66,487/- in respect of transfer pricing adjustment, Rs. 63,53,939/- due to disallowance u/s 40(a)(ia) and Rs. 9 lacs on account of the disallowances of advance payments towards the corporate membership. In the appeal, the first appellate authority allowed the transfer pricing adjustment issue in favour of the assessee but confirmed the other two additions. It is submitted that the assessee did not prefer any appea....

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.... assessee accepted the same. No explanation was offered by the assessee during the penalty proceedings but the learned CIT(A) treated the explanation of the assessee during the assessment proceedings as sufficient explanation during penalty proceedings which is factually incorrect and on this premise, the finding of the learned CIT(A) cannot be accepted. Learned DR relied upon the decision of the Delhi High Court in the case of CIT vs Zoom Communications Pvt. Ltd., 327 ITR 510(Del). According to the learned DR, the tax audit report says that certain provisions have to be disallowed, but in spite of the same, the assessee did not do so and thereby furnished the inaccurate particulars thereof. So also, it is her further contention that the co....

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.... not in dispute. Nowhere the revenue says that the assessee did not incur this expenditure but claimed deduction in respect of bogus expenditure. Entire dispute revolves around whether the disallowance of the expenditure u/s 40(a)(ia) in respect of provision made or the disallowance of corporate membership subscription for 9 years in advance, amounts to either concealment of income or the furnishing of inaccurate particulars thereof. When the assessee had revealed all the facts and the allegation is that in spite of the view of the auditors that since tax had not been deducted at source on some amount, the details of which are well furnished and the assessee entertained an information that the yearend provision for expenses which are revers....