Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 600 - GUJARAT HIGH COURTPenalty under section 271(A)(c) - difference in bad and doubtful debts claimed - Held that:- The issue of the assessee's larger claim of deduction of bad and doubtful claims had to be resolved through opinion of the third member of the Tribunal. Clearly the issue of taxability was debatable. But apart from this, the Tribunal found that there was no concealment of income on the part of the assessee. All facts were on record to enable the Assessing Officer to make addition if he was of the opinion that the claim made by the assessee was not sustainable in law. A bonafide raising of a wrong claim by itself would not give rise to penalty. Supreme Court in the case of Reliance Petroproducts Pvt.Ltd. (2010 (3) TMI 80 - SUPREME COURT ) held that where there is no concealment of particulars of income or the assessee has not furnished inaccurate particulars of income, penalty cannot be imposed. It was held that submitting incorrect claims in law do not give rise to penalty proceedings. - Decided in favour of the assessee
|