Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 1056 - AT - Income TaxPenalty u/s 271(1)(c) - transfer of intellectual properties - Held that:- The explanation of the assessee cannot be rejected as improbable or wholly contrary to the law. The assessee’s claim that it has transferred certain intellectual properties, such as expertise and know how, in respect of GIS business, which were self generated and therefore not liable to tax, cannot be rejected outright as improbable. It is only on fine points of arrangements that it has been held to be a right to use, rather than outright transfer, which has been given to the subsidiary. Under these circumstances, in our considered view, the claim of the assessee cannot be held to a wholly unacceptable claim. What is even more important is that the claim has been made in a very fair and transparent manner. Of course, even when assessee makes a claim in transparent manner but such a case is based on patently inadmissible legal position or distortion of facts, the penalty could nevertheless be leviable but that is not the case here. Thus it was not a fit case for imposition of penalty under section 271(1)(c) - Decided in favour of assessee.
|