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TMI Blog2018 (11) TMI 1889X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. It is only a mere disallowance of expenses on estimates on an adhoc basis. Penalty u/s.271(1)(c) of the Act is not attracted when there is an adhoc estimation of disallowance of expenses. Hence, we direct the Assessing Officer to delete the penalty levied U/s. 271(1)(c) of the Act. This ground is allowed. - ITA NO.5959 & 5960/MUM/2014 - - - Dated:- 30-11-2018 - SHRI C.N. PRASAD, J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gents. Assessee is one of the agent to the company. Assessee brings business to M/s. Twinkle Enviro-Tech (P.) Ltd. and in turn receives commission from the company. In the course of assessment proceedings, the Assessing Officer noticed that assessee earned commission of ₹.1.95 Crores from the said company and also incurred expenses of ₹.1.17 Crores for earning such commission. The Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out which assessee cannot earn any commission income. Ld. Counsel for the assessee submitted that it is only an adhoc disallowance made by the Assessing Officer which was further reduced by the Ld. CIT(A) for want of proper accounts and the expenses cannot be said to have been incurred for non-business purpose of the assessee and therefore, not admissible. The commission could not have been earned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on an adhoc basis. Penalty U/s.271(1)(c) of the Act is not attracted when there is an adhoc estimation of disallowance of expenses. Hence, we direct the Assessing Officer to delete the penalty levied U/s. 271(1)(c) of the Act. This ground is allowed. 6. Assessee raised additional grounds of appeal for both the Assessment Years which read as under: - (i) On the facts and circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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