Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (4) TMI 112 - HC - Income TaxCash payment - Disallowance - It is settled law that if a party wants to take defence, it is his choice and if he wants to do so, he should take defence at appropriate stage and it is not sufficient to take defence but it is his duty to produce evidence in support of his contention - In the course of hearing certain facts came into the notice of the Assessing Officer and thereafter by giving full details in the assessment order of the cash payment in large number or huge quantity of money, the Assessing Officer reached to a conclusion that the payment which have been made by the assessee were made to persons in short intervals just to defeat the provision of Section 40A(3) Regarding penalty - Section 271-D has specific provision for imposing penalty which contains penal Section within it and a specific provision was made by Section 273- B which provides that no penalty shall be imposed if there was a reasonable cause for said failure. - Obviously, it has a penal consequence under Section 271-D. Here in this case, the language of section is clear, which only says that the benefit is available to the assessee under specific provision of law shall not be available and it cannot be considered as penalty merely because one has to incur some loss due to the imposition of tax that will not make that loss as penal in nature. - ITAT has committed an error - order of AO and CIT(A) confirmed.
|