9911796707
TMI Blog2018 (11) TMI 1889X X X X Extracts X X X X X X X X Extracts X X X X ..... two appeals are filed by the assessee against the separate orders of the Learned Commissioner of Income-tax(Appeals)-32, Mumbai [hereinafter in short "Ld.CIT(A)] dated 01.11.2012 for the Assessment years 2007-08 & 2008-09 respectively. 2. Briefly stated the facts are that, assessee is engaged in the business of earning commission income on providing services to M/s. Twinkle Enviro-Tech (P.) Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablish the expenses for earning the commission income. The Ld. CIT(A) restricted the adhoc disallowance to 40% of commission income and sustained the 30% from other expenses. The Assessing Officer initiated penalty proceedings and levied penalty u/s. 271(1)(c) of the Act which was sustained by the Ld. CIT(A). 3. Before us, Ld. Counsel for the assessee submitted that the assessee has to incur expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. 271(1)(c) of the Act. 4. Ld. DR vehemently supported the orders of the Assessing Officer. 5. We have heard the rival submissions, perused the orders of the Authorities below. On a perusal of the Assessment Order and the Ld.CIT(A) order, we find that the Assessing Officer disallowed the commission as well as the expenses on an estimate basis which was further reduced by the Ld.CIT(A). None of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the consequential penalty order passed under section 271(1)(c) of the Act is bad in law and not sustainable in the eyes of law. 7. However, since we have decided the issue and deleted the penalty on merits, we are not inclined to go into the additional grounds raised by the assessee. 8. In the result, appeals filed by the assessee are allowed. Order pronounced in the open court on the 30th Nove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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