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2018 (7) TMI 285 - ITAT MUMBAILevy of penalty u/s 271(1)(c) - disallowance under section 14A read with rule 8D(2)(iii) - Held that:- Half percentage of average value of investment being administrative expenses the assessee has filed the income and expenditure account for the year ended 31-03-2011 which clearly proves that none of the expenses are co-related to the exempt income by the lower authorities neither during assessment proceedings nor during penalty proceedings that the same relates to exempt income. We have also gone through the income and expenditure account and even now before us there is no averment that the particular expenditure is relatable to exempt income. Disallowance made by AO for non-deduction of TDS under the TDS provisions on purchase of software Revenue could not pointed out under which provision the TDS has to be deducted. The assessee made these expenses for purchase of software Programme, which has been treated by the assessee as having life of one year and hence, written off and claim the same as expenses. We are of the view that the purchase of software does not attract any TDS provision. Disallowance of business promotion expenses for non-presentation of vouchers is for the reason that the amount paid on tea, coffee etc. on clients is due to smallness of denomination of payments and bills and vouchers could not be preserved. Accordingly, in our view this has not a case of furnishing of inaccurate particulars of income because the assessee has filed all the particulars of income before the AO during the assessment proceedings or in the return of income. This may be a case of disallowance of expenses but it is not a case of furnishing of inaccurate particulars of income. It cannot be said that the assessee has concealed the income by furnishing of inaccurate particulars of income. Accordingly, we delete the penalty and allow the appeal of the assessee.
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