2020 (4) TMI 463

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....mpany, is engaged in the business of providing business support services, investments in shares and securities and share trading. For the assessment year under dispute, the assessee filed its return of income on 15.10.2010 declaring loss of Rs. 39,34,508/-. During the assessment proceeding the Assessing Officer noticed that the assessee has debited an amount of Rs. 8,76,706/- to the profit and loss account towards expenditure incurred for promotion and advertisement. Noticing the above, the Assessing Officer called upon the assessee to prove the genuineness of such expenditure through supporting evidences. Though, the assessee furnished the break-up of such expenses, however, the Assessing Officer rejecting the submissions made by the asses....

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....Assessing Officer has not specified the exact charge for which he has initiated proceeding for imposition of penalty under Section 271(1)(c) of the Act. Therefore, he submitted, the penalty order passed under Section 271(1)(c) of the Act cannot be sustained. In support, he relied upon the decision of the Tribunal in the case of HC Jahangeer Vs. ACIT in ITA No. 1261/Mum/2011 dated 17.05.2017. Without prejudice, he submitted, the additions on the basis of which the Assessing officer has imposed penalty under Section 271(1)(c) of the Act were not made as a result of any inaccurate particulars furnished by the assessee or concealment particulars by the assessee. He submitted, assessee has made a bonafide claim of deduction which has been rej....

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....sessee has failed to furnish any evidence to support such increase in the expenditure. Thus, as could be seen, the disallowance is not due to any false claim made by the assessee but on the basis of doubt entertained with regard to the quantum of expenditure. That being the case, in our considered opinion, the assessee cannot be accused of furnishing inaccurate particulars of income or concealing income. In so far as claim of excess loss on account of sale of motor car, it is the claim of the assessee that such excess loss was claimed inadvertently due to ignorance. The learned Authorized Reprehensive has submitted, during the assessment proceeding the assessee has furnished a working of short term capital loss on sale of motor car and the ....