AMERSEY DAMODAR Vs. DY. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS appeal by the assessee is directed against the order of learned Commissioner (Appeals) -V, Mumbai, dated 20 -11 -1996, and pertains to the assessment year 1990 -91.

(2.) THE effective ground of appeal raised in the present appeal is that learned Commissioner (Appeals) erred in confirming the levy of penalty under section 271(l)(c). In the alternative ground it is submitted that the learned Commissioner (Appeals) had erred in retaining 150 per cent of the tax as penalty as against 100 per cent leviable being the minimum.

(3.) THE assessing officer in detail examined the foreign travel expenses aggregating to Rs. 6,06,713 relating to the partners of the firm, i.e., Mr. and Mrs. Amersey who visited Canada and USA allegedly for the business purposes to contact parties at Canada and USA. After considering in detail the assessee's submissions, the assessing officer held that the foreign travel expenses were incurred for the purposes other than the business of the firm after taking note of following important facts .