2019 (6) TMI 1049

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....(c) confirmed of Rs. 3,10,926/- may be deleted 1. The Ld. CIT(A) erred in confirming the levy of penalty u/s.271(1)(c) of the Act to the extent of Rs. 3,10,926/- by upholding the levy of penalty in respect of disallowance of expenses of Rs. 10,36,420/- incurred for appellant's own education at Harward business School without appreciating that there was no inaccurate particulars of income furnished and hence, the penalty restricted on this disallowance is unjustified and liable to be deleted. 2. The learned CIT(A) failed to appreciate that merely because the disallowance of expenses is confirmed by the Ld. CIT(A) in quantum order and no further appeal is filed in respect of the same, the penalty could not be automatical....

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....15 and levied the penalty @ 100% of the tax sought to be evaded. The Assessing Officer levied the penalty of Rs. 3,86,003/- under section 271(1)(c). On further appeal before the ld. CIT(A), the action of Assessing Officer in levying the penalty was confirmed. The ld. CIT(A) while confirming the penalty order concluded that assessee himself has gone for higher studies to Harward Business School for Real Estate and Finance. The assessee has not proved that in fact the expenditure was incurred for the purpose of business of the assessee and that the expenditure remained unexplained and that the provision of Explanation (1) to section 271(c) is clearly attracted. Thus, further aggrieved by the order of ld. CIT(A), the assessee has filed the pre....

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....e assessee debited the expenditure of Rs. 12,86,675/- incurred on account of education. The Assessing Officer disallowed the entire expenses. However, on appeal before the ld. CIT(A), the disallowance was restricted to Rs. 10,36,420/-. The assessing officer while making disallowance concluded that the expenses claimed by the assessee are personal in nature and cannot be linked to the income earned. There is no finding of the assessing officer that the particulars of expenses claimed by the assessee are inaccurate. The ld. AR for the assessee vehemently argued that mere disallowance of the expenses would not automatically lead to levy of penalty. 6. The Hon'ble Supreme Court in the case of CIT v. Reliance Petroproducts (P.) Ltd. (su....