Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 1202 - AT - Income TaxLevy of penalty u/s 271(1)(c) - addition disallowance of additional price for purchase of sugarcane - Held that:- It has been clearly noted that increased prices was never paid to the farmers but adjusted in the share capital account. It is also noted that such increase was granted in the years of profits. If assessee really wanted to give benefit to the farmers, we fail to understand why money was not paid to the farmers. If money was to be adjusted in the share capital account then consent of farmers should have been obtained by way of general body meeting which was never done and the decision to convert to increased price was ratified only on 26.6.1995 These factors clearly shows that assessee has merely tried to evade tax by showing extra expenditure on account of enhance price for sugarcane. No doubt the Hon'ble Supreme Court in the case of CIT v Reliance Petroproducts Pvt Ltd (2010 (3) TMI 80 - SUPREME COURT ) held that if a disclosure is made then it cannot be said that assessee has concealed particulars of the income. This is not a case of mere disallowance of expenditure or disallowance of a particular deduction rather it is a case of disallowance of bogus expenditure which has been claimed just to reduce the profits earned by the assessee. Therefore, in our opinion, the Ld. CIT(A) has correctly confirmed the levy of penalty u/s 271(1)(c) of the Act and we uphold his action. Appeal of the assessee is dismissed.
|