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2016 (11) TMI 711 - ITAT AHMEDABADPenalty levied on account of cessation of liability and estimation of net profit for concealment or furnishing inaccurate particulars of income - Held that:- As emerges from the record that the assessee was running into perennial losses and became a sick unit unable to pay its outstanding loans secured against the fixed assets. The loan in question, though adjusted to capital reserve account by the assessee, was not written off by the Gujarat Industrial Co-op. Bank Ltd. All the relevant details about the transfer of the amount to capital reserve account are duly mentioned in the audited report. This clearly reflects that all the relevant particulars were filed by the assessee along with return of income. Merely because the assessee did not contest the addition, cannot give rise to any adverse inference against the assessee, as in any case it was running into huge losses. Thus no penalty to be levied - Decided in favour of assessee
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