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2015 (2) TMI 534 - ITAT DELHIPenalty u/s 271(1)(c) - assessee had claimed STT in its profit and loss account and has thereby reduced its income by concealing the particulars of income - disallowance made on account of section 94(7) and u/s 14A - Held that:- Held that:- There is no reason to doubt the bonafide of the assessee in making the claim as there was no gain to the assesee as STT could not be utilized as rebate and secondly there was no tax sought to be evaded. In both the situation i.e tax payable on return income and tax position in the assessed income, the tax liability was Nil. So far as other addition / disallowance made on account of section 94(7) and u/s 14A there is no reason to doubt the explanation of the assessee. Besides, the additions/disallowances on which penalty in question has been levied, have been made undisputedly on the basis of disclosure made by the assessee available on record. Hence it cannot be said beyond doubt in the present case that there was concealment of particulars of income or furnishing inaccurate particulars thereof on the part of the assesee to attract penal action u/s 271(1)(c) of the Act on the disallowances / additions as discussed above. Nor is it the case of the revenue that the assessee has failed to disclose fully and truly all the material facts relating to particulars of income, the only mistake committed by the assessee was that while computing the payable income and an amount which should have been disallowed due to provisions of section 40(a) (ib) of the Act was not disallowed or added back by the assessee. The reasons behind the other additions / disallowances has also been explained by the assesee on which there is no reason to doubt its bonafide. No penalty u/s 271 (1) (c) can be levied on the disallowances/additions made by the AO which were based on the disclosure of the related facts by the assesee only. - Decided in favour of assessee.
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