Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 191 - DELHI HIGH COURTPenalty u/s 271(1)(c) - disallowance of setting off of the loss of erstwhile partnership firm against the income of the assessee - Held that:- Having regard to the facts, the ultimate disallowance was on account of Section 170(1) which in fact is the applicable provision as regards the succession was not even reflected in the orders of the lower authorities as well as the Tribunal in either round of litigation, i.e. quantum and penalty. AO in this case, as also the CIT(A) was under the misapprehension that the assessee was not a successor but this Court has conclusively ruled that the assessee was in fact a successor but not entitled by virtue of Section 170(1) to lay claim to the adjustment of the loss of the erstwhile firm. Such being the case, lack of clarity by the income tax authorities right upto the ITAT itself, in the opinion of the Court. It is a justifiable ground for the assessee to say that the point was debatable. Such being the case, the upholding of the quantum proceedings by the Court could not have been the only basis for the imposing of the penalty - in favor of the assessee.
|