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2015 (2) TMI 1247 - ITAT DELHIPenalty u/s. 271(1)(c) - disallowance of prior period expenses - Held that:- There were 8 units which were later merged and the assessee company was incorporated. The expenses of ₹ 1,69,71,833/- pertained to an earlier period but were claimed in the current year. Therefore, there was no attempt to conceal income. The assessee claimed the expenses in the current year under a bonafide belief that the expenses could be claimed as they were genuine business expenses. Mensrea was a essential requirement of penalty u/s 271(1)(c). See CIT vs. Reliance Petro Products Ltd. [2010 (3) TMI 80 - SUPREME COURT ] We are of the view that the assessee has not deliberately furnished inaccurate particulars with a view to concealment of income. We further find that the explanation of the assessee is bonafide. In the background of the aforesaid discussions and precedents, we find that Ld. CIT(A) has rightly observed that the assessee would not be liable for levey of penalty and he deleted the penalty - Decided against revenue.
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