9911796707
TMI Blog2020 (8) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... (a)(ia) - a bonafide mistake on the part of the assessee, as submitted by the learned Authorised Representative. AO has not doubted either the genuineness of the expenditure claimed or the payments made. The only reason for which the expenditure was disallowed is due to non deduction of tax at source. In other words, it is statutory disallowance. That being the case, the assessee cannot be accused of submitting inaccurate particulars of income or concealing its income. Accordingly, we delete the penalty imposed under section 271(1)(c) - Decided in favour of assessee. - ITA no.574/Mum./2019 - - - Dated:- 30-6-2020 - Shri Saktijit Dey, Judicial Member And Shri N.K. Pradhan, Accountant Member For the Assessee : Shri Jitendra Singh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. The Assessing Officer, being of the view that the assessee should have disallowed the corresponding expenditure and not the TDS amount, disallowed the amount of ₹ 5,40,170, under section 40(a)(ia) of the Act. The assessee did not contest the aforesaid disallowance. On the basis of the aforesaid disallowance, the Assessing Officer initiated proceedings for imposition of penaltyunder section 271(1)(c) of the Act, alleging furnishing of inaccurate particulars of income and concealment of income. After issuing a show cause notice to the assessee under section 274 r/w section 271(1)(c) of the Act, the Assessing Officer ultimately passed an order imposing penalty of ₹ 1,60,776, under section 271(1)(c) of the Act. The penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer has not doubted either the genuineness of the expenditure claimed or the payments made. The only reason for which the expenditure was disallowed is due to non deduction of tax at source. In other words, it is statutory disallowance. That being the case, the assessee cannot be accused of submitting inaccurate particulars of income or concealing its income. Accordingly, we delete the penalty imposed under section 271(1)(c) of the Act amounting to ₹ 1,60,776. 8. Before parting, we must observe that the assessee has raised a legal issue by way of additional ground challenging the validityof penalty order passed by the Assessing Officer on the ground of defective show cause notice issued under section 274 of the Act. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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