TaxTMI 
TaxTMI 
2024 (7) TMI 719
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....he A.Y. 2009-10, has been challenged on the grounds as culled out from memorandum of appeal/grounds of appeal: - a. That the Ld. CIT(A) was erred in not granting proper, effective and fair opportunity of being heard while passing the appellate order, the order of the Ld. CIT(A) is therefore bad and illegal as the same is framed in breach of the statutory provisions and in accordance with law. b. That the Ld. CIT(A) erred in confirming the action of the Ld. AO in levying penalty u/s. 271(1)(c) of "the Act" because the order of the Ld. AO whereby penalty levied was bad and illegal as the necessary conditions for intimating the penalty proceedings and the completion thereof were not fulfilled. c. That the Ld. CIT(A) has failed to appreci....
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....vide proper opportunity to the assessee to file necessary documents and accounts etc. including the fund flow statement, if any as per law. 4. Accordingly, the assessee was granted an opportunity as per the directions of the Hon'ble ITAT to explain with sufficient evidence to show as to how his case does not attract the provisions of the Section 14A r.w.r 8D. Accordingly, the assessee submitted the fund flow statement for the year under consideration alongwith details of investment made and in the proceedings before the Ld. AO, it was noticed that the assessee has earned exempt income; the assessee maintaining the separate books of accounts for all his proprietorship concerns wherein the expenditures are debited separately; the fund flow s....
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.... hearing but due to the expensive litigation the assessee has not been able to challenge the quantum of additions in appeal. 7. After considering the submissions of the assessee with respect to the penalty proceedings, it was observed by the Ld. AO that addition is on account of disallowance of administrative expenses/indirect common expenses incurred in relation to earn exempt income and it was not a case of addition on estimate basis. 8. The assessee has not made any disallowance u/s. 14A in respect of income nor did computation of total income for administrative expenses/ indirect common expense incurred in relation to earn exempt income. It was therefore concluded by the Ld. AO that the assessee has furnished inaccurate particulars of....
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....in relation to earn exempt income. 12. What is concealment of income or inaccurate particulars of such income as contemplated by Section 271(1)(c), has been explained by the Hon'ble Supreme Court in the case of the CIT Vs. Reliance Petro Products (P.) Ltd. as reported in 322 ITR 158 wherein it has been held as under: - "A glance at the provision of s. 271(l)(c) would suggest that in order to be covered, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars of his income. Present is not the case of concealment of the income. That is not the case of the Revenue either. As per Law Lexicon, the meaning of the word "particular" is a detail or details....
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.... and same is reflected in the personal balance sheet; Interest payments are made to finance company for the purchase of trucks etc. which were used for business of the assessee; direct expenditure for earning exempt income has been debited to his personal accounts. Above submissions and the explanation given by the assessee is an admitted fact as find recorded in the order of the Ld. AO. Thus, admittedly no information in the return was found to be incorrect or inaccurate. Further, statement made or any detail supplied was not found to be factually incorrect. Thus, the fact and circumstances of the case is covered by the ratio of Hon'ble Supreme Court judgment in CIT Vs. Reliance Petro Products (P.) Ltd. referred (supra). Further, the facts....