TaxTMI 
TaxTMI 
TaxTMI 
2018 (5) TMI 1847
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.... 2. At the outset, Learned Counsel for the assessee submitted that for the Assessment Year 2002-03 penalty was levied on the disallowance partly sustained by the Ld.CIT(A) towards management service charges claimed by the assessee. It is submitted that, the Ld.CIT(A) in quantum proceedings allowed 75% of the management service charges as Revenue expenditure and 25% as capital expenditure. Learned Counsel for the assessee submitted that similar disallowance was made in the Assessment Year 2007-08 and the penalty was also levied with reference to such disallowance made with respect the management service charges and the Hon'ble Tribunal in ITA.No. 3372/Mum/2015 dated 06.02.2017 deleted the penalty as there is no concealment of income or ....
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.... be incorrect or inaccurate. The statement given by the assessee was not found to be factually incorrect hence prima facie assessee could not be held guilty for furnishing inaccurate particulars. Therefore, in this case the claim of the assessee was partly allowed by the CIT(A) and Tribunal has submitted the finding of CIT(A). Therefore, we are of the view that CIT(A) has rightly justified in following the decision of Hon'ble Supreme Court. We also find that the Bombay High Court in case of Sesa Resource Ltd. Vs Assistant Commissioner of Income Tax where in the Hon'ble High Court has relying upon the decision of Reliance Petroproducts (P) Ltd. (supra) has deleted the penalty manner we also find in the case of Director of Income Tax ....
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....cer and the penalty was initiated without application of the mind in mechanical manner. 7. Coming to the merits of the issue, it is submitted that the penalty was levied with reference to the disallowance of the prior period expenses which was disclosed in the Books of Accounts and there is no failure on the part of the assessee to disclose these expenses. Ld. Counsel for the assessee referring to Page No. 11 of the Paper Book submitted that, in the schedules to Profit and Loss Account it was clearly mentioned that legal and professional charges includes prior period expenses. All the expenses are disclosed in the Tax Audit Report. It was also further submitted that the computation of income filed by the assessee in point No.8 it was speci....
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....onsidered identical situation. The Tribunal considering the decision of the Hon'ble Jurisdictional High Court in the case of CIT v. Samson Perinchery [392 ITR 4] held that, if the Assessing Officer failed to specify the charge for which the penalty proceedings are initiated the proceedings are bad in law. Respectfully following the said decision, we hold that the notice issued u/s. 274 r.w.s. 271(1)(c) of the Act suffers from infirmity as it was issued on non-application of mind by the Assessing Officer and thereby the proceedings itself are vitiated. Therefore, the penalty is deserved to be deleted on this ground itself. 10. Even on merits, we find that the penalty was levied for disallowing the expenses claimed by the assessee relati....