2024 (5) TMI 1715

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.... For the Department : Shri Mirza Azhar Beig. ORDER PER NARENDRA KUMAR BILLAIYA (AM) 1. This appeal by the revenue is preferred against order dated 30.11.2023 by National Faceless Appeal Centre, Delhi [hereinafter in short "Ld. CIT(A)"] pertaining to A.Y. 2012-13. The solitary grievance of the revenue is that the Ld. CIT (A) erred in deleting the Penalty levied under section 271(1)(c) o....

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.... 5. The underlying facts are that the assessee had acquired certain land from IFCI which had acquired these lands under SARFAESI Act from M/s. Punjab Fibers Ltd., Ropar Unit. The assessee was under impression that the said land would be free of encumbrances which was not true and the assessee had to bear costs of pending laboutr / Provident Fund dues as mentioned hereinabove. These expenses were ....

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....ts pertain to the statutory dues. If these statutory expenses are taken to be part of stock-in-trade and were to be debited on sale of such stock, even then these expenses were to be allowed. If these statutory expenses are considered as capital expenditure, then the assessee would be eligible to claim it as and when the capital assets are sold. Therefore, the only dispute was the year in which th....