2026 (4) TMI 1130

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....of a penalty order passed by Assessing Officer [hereinafter referred to as "the AO"] u/s 271(1)(c) of the Income Tax Act, 1961 [hereinafter referred to as "the Act"], vide order dated 08.03.2016. 2. Grounds of appeal raised by the assessee, are as follows: "1. That, the Ld. CIT(A) has wrongly confirmed levy of penalty of Rs. 93,112/- u/s 271(1)(c) of the LT. Act, 1961. 2. That, the findings of the Ld. CIT(A)are not justified and are bad-2 in-law. 3. The appellant craves to add, amend, alter and DLEETE any of the above grounds of appeal." 3. Brief facts of the case is that the appellant is HUF and is engaged in the business of import and export of dehydrated vegetable fruit, food, grains and other commodities....

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....peal filed by the assessee is found to be devoid of merit. In the result, the appeal is dismissed." 5. That the assessee filed an appeal against the impugned order dated 15.03.2013 before this Tribunal. a. During the course of hearing, the Ld. AR of the assessee submitted that the appellant has claimed revenue expenses amounting to Rs. 6,32,657/- as preparation of furniture, expenses on purchase of AC and LCD for the head office and the same was disallowed during the assessment proceeding. The appellant had claimed revenue expenses amounting to Rs. 6,32,657/- for furniture, purchase of AC and LCD under the head office expense. That penalty u/s 271(1)(c) cannot be levied on the basis of wrong claim of expenses. There was....

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....was pointed out that the disallowance of claim by Assessing Authority in the assessment order under section 143(3) of the Act in the assessment proceedings could not be the sole basis for levying penalty under section 271(1)(c) of the Act. It was further submitted that making a wrong claim would not make the assessee liable under section 271(1)(c) of the Act. It was again reiterated that there was absolutely no concealment, nor were any inaccurate particular were submitted by the assessee. As against this, learned Counsel appearing on behalf of the assessee pointed out that the language section 271(1)(c) had to be strictly construed, this being a taxing. Section 271(1)(c) is as under:- "1. That, the learned Assessing Officer has wr....