Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 657 - ITAT DELHIPenalty u/s 271(1)(c) - Computation of loss - addition made by the AO on the ground that expenditure were incurred prior to setting up of the business and are in nature of pre-operative expenses - Held that:- No penalty u/s 271(1)(c) of the Act can be justifiably be levied on the facts present assessee. We also found that the case of the assessee is not that case where the revenue authority has found any facts had not been disclosed by the assessee. The revenue authority has also failed to establish that in the return of income the assessee has either been shown as incorrect or inaccurate particulars of its income. Thus merely because the expenditure incurred has been disallowed does not lead to an inference that, it is a case of furnishing inaccurate particulars of income. If an assessee has been able to offer an explanation, which is not found by the Revenue Authorities to be false, and assessee has been able to prove that such explanation is bonafide and that all the facts relating to the same have been disclosed by him, the assessee shall be out of the clutches of Explanation 1 to section 271(1)(c) of the Act and in such cases no penalty shall be imposed. - Decided in favour of assessee.
|