2023 (6) TMI 217

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....ed. The ground of assessee is as follows:- 1. The Ld. AO has erred in levying penalty as the payment in cash was made for hospital bills as the hospitals did not accept payment through cheques. 3. The ld. counsel of assessee submitted that the assessee has not furnished inaccurate particulars of income as the assessee has fully reported and disclosed all the particulars on the bonafide and reasonable believe. The ld. counsel submitted that the assessee had actually made expenses of Rs. 5,33,025/- at Fortis Hospital and Escort Hearth Institute for the treatment of employees and directors of the assessee company under commercial expediency which has not been dispute or doubted by the authorities below. The ld. counsel submitted that the di....

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....ll, from the assessment as well as first appellate order, we note that the assessee claimed expenditure of Rs. 5,33,025/- on account of medical expenditure on the employees and directors of the company. But said claim was disallowed by the Assessing Officer by observing that the assessee has made payment in cash in excess of Rs. 20,000/- on various occasions and made disallowance. Assessee did not carry the matter before ld. CIT(A) and paid all due taxes etc. thereon terminating the litigation on this issue. However, the Assessing Officer initiate penalty proceedings and imposed penalty by holding that the assessee has not furnish accurate particulars of its income and has thus, concealed the particular of income to the extent of Rs. 5,33,0....