The Appellate Tribunal considered a case involving the ...

Tribunal cancels penalty on electricity expenses disallowance. Machine vital for biz activity. Assessee's explanation genuine.

Case Laws Income Tax

July 2, 2024

The Appellate Tribunal considered a case involving the disallowance of electricity expenses leading to a penalty u/s 271(1)(c). The Tribunal noted the essential role of a sorting machine, powered by electricity, in the business activity. The machine was part of the Plant & Machinery and depreciation had been allowed by the Assessing Officer. While the electricity bill was in the husband's name due to the machine being used in his godown, the lack of direct evidence led to disallowance. The Tribunal found the assessee's explanation to be bona fide, not mala fide, as the claim was not entirely baseless. Citing a relevant case, the Tribunal concluded that the penalty was unwarranted, as the assessee had not concealed income intentionally. Consequently, the penalty u/s 271(1)(c) was deleted, and the assessee's appeal was allowed.

View Source

← Previous Next →

The Appellate Tribunal considered a case involving the ...

Tribunal cancels penalty on electricity expenses disallowance. Machine vital for biz activity. Assessee's explanation genuine.

Case Laws Income Tax

July 2, 2024

You may also like:

Deduction u/s 10A - Adhoc disallowance of professional expenses, electricity charges and miscellaneous expenses - It is not in dispute that the aforesaid administrative...

The Appellate Tribunal considered the levy of penalty u/s 270A. The Assessing Officer (AO) imposed the penalty u/s 270A(9)(a) for misrepresentation of facts and...

Penalty u/s 271(1)(c) - Disallowance of interest expenditure under section 43B as well as disallowance export product development expenses - Just because the assessee...

Disallowance on work penalty expenses u/s 40(a)(ia) - Whether the work penalty expenses were actually interest expenses liable to provisions of TDS – Held No - HC

Disallowance of conveyance expenses, staff welfare expenses, sundry expenses and traveling expenses - certain expenses were not supported by third party vouchers,...

Penalty u/s 271(1)(c) - disallowances in the quantum assessment order - whether any concealment or furnishing of inaccurate particulars proved? - Tribunal directs...

Tribunal adjudicated on ad hoc disallowances of expenses debited to P&L, interest paid to banks, salary from Ozone Pharmaceuticals Ltd., deduction u/s 80IB/80IC, and...

Penalty u/ s 271(1)(c) - Disallowance on account of personnel expenses, operative expenses and finance expenses - it a “mere disallowance” of an expense does not warrant...

CENVAT Credit - generation of electricity which, later on, is cleared to its sister unit - The Appellate Tribunal finds that the appellant is indeed entitled to Cenvat...

The Appellate Tribunal considered the disallowance of club expenses to determine if they were incurred for business purposes. It held that the Assessing Officer's...

Disallowance of commission paid to foreign agents - The Tribunal upheld the disallowance of commission expenses to both domestic and non-resident companies due to the...

30% ad-hoc disallowance of travelling expenses being car charges, foreign travelling expenses and domestic travelling expenses - The Assessee argued that the expenses...

The Appellate Tribunal considered two issues: Penalty u/s 271(1)(c) and u/s 270A. For the first, the Tribunal found the penalty notice defective as it did not specify...

Addition on account of Electricity expenses - merely because the electricity meter is not in name of the both the owners and is in name of one of the owners only, the...

Levy of penalty u/s 271(1)(c) - disallowance of expenses of foreign Travel expenses and inter city travel expenses - Revenue has not rejected the explanation of the...

Quick Updates: