COMMISSIONER OF INCOME TAX Vs. DEEKSHA HOLIDAYS LTD.

JUDGEMENT

(1.) THREE additions to the income of the assessee which are as under :

(2.) WHILE doing so, the AO also initiated the penalty proceedings against the assessee under s. 271(1)(c) of the IT Act the penalty order stating that there was no concealment of income or furnishing of inaccurate particulars. We may note that the three additions which were made by the AO were in the following manner :

(3.) IN respect of first addition, explanation of the assessee was that though the assessee had excluded Rs. 2,69,680 under the head "Profit and sale of cars", capital gains in respect of sale of these cars was not included by inadvertence likewise in respect of claim of deduction of expenses under the head "Professional development expenses" was that the expenses were in fact incurred for sponsoring its director for post -graduation course etc. in the field of law and it was the bona fide claim made by the assessee. Same was the plea in respect of advertisement expenses. The Tribunal while accepting these contentions of the assessee, has recorded as under :