2019 (2) TMI 713

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s selected for scrutiny and assessment under section 143(3) of the I.T. Act, 1961 was completed. The A.O. made the following additions (i) Disallowance of interest paid on car loan at Rs. 36,674/- (ii) Disallowance of car running and maintenance expenses at Rs. 2,63,913/- and (iii) Disallowance of depreciation Rs. 91,514/-. The A.O. noted that these expenses were claimed on the car which is purchased in the name of the Director. The assessee at the assessment stage agreed for the addition. Therefore, A.O. issued show cause notice before levy of the penalty and vide separate Order levied the penalty under section 271(1)(c) of the Income Tax Act, 1961, which is confirmed by the Ld. CIT(A). 3. Learned Counsel for the Assessee submitted that....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....9. Vs Income Tax Officer, Ward-II(4), Faridabad.   (Appellant) (Respondent) For Assessee : Shri Somil Aggarwal, Advocate. For Revenue : Shri N.K. Bansal, Sr. D.R. Date of Hearing : 30.01.2019 Date of Pronouncement : 31.01.2019 ORDER PER BHAVNESH SAINI, J.M. This appeal by assessee has been directed against the order of the Ld. CIT(A), Faridabad, Dated 28.01.2016, for the A.Y. 2007-2008 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 assessee is a firm and filed return of income declaring income of Rs. 1,40,030/-. The A.O. examining the books of account and details, made certain additions against the as....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ted that the assessee did not raise this issue specifically before the authorities below. Therefore, new point should not be allowed to be raised at this stage. 5. After considering the rival submissions, we are of the view that penalty is not leviable in the matter. The Hon'ble Karnataka High Court in the case of CIT vs. M/s. SSAs Emerald Meadows 73 taxmann.com 241 confirmed the Order of the Tribunal in which the Tribunal has allowed the appeal filed by assessee holding that notice issued by the A.O. under section 274 r.w.s. 271(1)(c) of the I.T. Act, 1961, to be bad in Law and it did not specify in which limb of Section 271(1)(c) of the I.T. Act, 1961, the penalty proceedings had been initiated i.e., whether for concealment of pa....