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2014 (2) TMI 845 - ITAT MUMBAIPenalty u/s 271(1)(c) of the Act - Inflation in expenses – Concealment of income - Expenses debited not connected with the business – Held that:- The CIT(A) held that the appellant has not been able to place any evidence on record that Mr. Jayanti Mehta, in fact, travelled abroad on behalf of the assessee firm and procured the business for the appellant firm - Merely having vast experience in the line of the business of the firm, is not a sufficient criteria to allow an expense incurred on a person, who is otherwise not connected in any way with the business operations of the appellant firm. The assessee has also failed, both during the course of assessment proceedings as well as in the penalty proceedings to substantiate its claim that the travelling expenses of Mr. Jayanti mehta was incurred for business purposes - the disallowance was related to the interest genuinely incurred for the purposes of business and the disallowance was made u/s 14A of the Act - the assessee has failed to prove that the travel expenses of Shri Janti Mehta for the purposes of its business, i.e., the assessee has failed to address the view of the AO that the expenses were inflated, which has resulted in concealment of income – thus, there is no reason to interfere with the order of the CIT(A) – Decided against Assessee.
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