Penalty for Cash Payments on Transport Expenses Deemed Unjustified; Section 271(1)(c) Misapplied for Ad Hoc Disallowance.

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....Penalty u/s 271(1)(c) - disallowance of transport expenses - payment made in cash - Just because the payments were made in cash cannot be a basis to doubt the genuineness of the expenditure. Since the disallowance are made on adhoc basis by applying the rate of 15%, holding the assessee liable to pay penalty for furnishing inaccurate particulars of income cannot be held to be justified. - AT....