Kirloskar Proprietary Ltd. v. DCIT

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The Tax Publishers2019 TaxPub(DT) 3691 (Pune-Trib)

INCOME TAX ACT, 1961

Section 271(C)

Penalty under section 271(1)(c) cannot be imposed on disallowance of expenses, which were not otherwise bogus.

Penalty levied under section 271(1)(c) - Leviability - Disallowance of expenses under section 14A -

Crux of grievance of assessee was with regard to penalty levied under section 271(1)(c) and also that penalty was levied on disallowance made under section 14A. Held: Penalty was imposed on making disallowance of certain expenses. But for that, there was nothing on record to show that assessee lodged bogus claims in respect of these expenses. That apart, expenses were claimed by assessee in a bona fide manner. The mere fact that above disallowances have been made, does not bring a case within parameters set out in section 271(1)(c).

Followed:M/s. 4A Financial Securities Ltd. v. DCIT [ITA No. 1036/Del/2018, dt. 26-7-2018], CIT v. Shri Samson Perinchery (2017) 392 ITR 4 (Bom.) : 2017 TaxPub(DT) 0672 (Bom-HC),

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A.Y. : 2008-09

IN THE ITAT, PUNE BENCH