Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 1274 - HC - Income TaxPenalty u/s 271(1)(c) - claim made on account of bad debt not allowed - Held that:- It is not in dispute that the amount of debt had duly been written off by the assessee; why was the same not allowed is however a mystery to us but be that as it may, the fact remains that the claim for bad debt after the debt had been written off could never be a ground for initiating penal proceedings. Before initiating the penal proceedings the Assessing Officer is required to be satisfied as to whether any income has been concealed or any inadequate particulars have been furnished. As the appellant submitted that the order under challenge passed by the Assessing Officer does not show any such satisfaction nor the learned Tribunal had considered the matter in that perspective. The order of the CIT has been passed mechanically and without applying mind. The learned Advocate appearing for the respondent did not seriously try to support the order under challenge. We have no doubt in our mind that the order suffers from perversity of the highest order. The order under challenge is set aside. The question as framed is answered in the affirmative.
|