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2018 (10) TMI 360 - ITAT DELHIPenalty proceedings u/s 271(1)(c) - preoperative expenses addition - Held that:- A perusal of the orders shows that the contention of the Assessing Officer is incorrect that the business of the assessee had not commenced. It was only submitted before the Assessing Officer that it was the first year of incorporation of the company and the company had also sold samples of wooden flooring to one of the parties towards which an income of ₹ 82,932/- had been declared by the assessee. It is also seen that the AO has not doubted the genuineness of the expenses and the only ground for disallowing the expenditure was that in view of the Assessing Officer the expenses were in the nature of preoperative expenses. Further, it is seen that the Assessing Officer has imposed penalty for furnishing inaccurate particulars of income whereas on facts of the case, it is our considered opinion that all the information relevant to the impugned disallowances was before the Assessing Officer at the time of assessment proceedings and no case could have been made out by the AO for furnishing inaccurate particulars of income. - Decided against revenue.
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