2011 (3) TMI 1790

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....ginder Singh, This appeal is by the assessees against the order of the learned CIT(A)-I, Indore, dated 28.8.2009 with regard to confirming the penalty of ₹ 1,10,000/- imposed u/s 271(1)(c) of the I.T. Act. 2. During hearing of the appeal, we have heard Shri H.P. Verma along with Shri Ashish Goyal, ld. Counsel for the assessee and Shri Keshave Saxena, ld. CIT(DR). The crux of arguments on....

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....essing Officer completed the assessment vide order dated 7.3.2006, framed u/s 143(3) of the Act at a total income at nil, as returned by the assessee, after setting off of brought forward losses of ₹ 12,02,576/-. Subsequently, the assessee company preferred appeal before the ld. CIT(A) where it was partly allowed on vehicle hire charges, vehicle expenses and telephone expenses etc. and full ....

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....ts income, therefore, merely on the basis of disallowance made u/s 40A(2)(b), no penalty is leviable. The assessee is fortified by the decision of the Mumbai Bench of the Tribunal in the case Jhavar Properties P. Ltd. (supra). It is not the case that the assessee concealed anything or furnished inaccurate particulars. Disallowance of expenses will not per se tantamount to furnishing inaccurate par....