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2013 (3) TMI 370 - HC - Income TaxPenalty u/s 271(1)(c) - as per AO the assignment transaction between the assessee and MIRC was a sham transaction / colourable device and brought to tax an amount of Rs.26.68 crores in the hands of MIRC on account of cessation of sales tax liability under Section 41(1) of the Income Tax Act - Tribunal deleted the penalty - Held that:- Tribunal was of the view that the assessee had disclosed the accounting policy adopted by it in determining profits from the assignment of business, that the assignment of liability and purchase of debts were two integral part of assignment of business and the net realizable value of the debt made by the assessee was bona fide and honest. The basis adopted by the Tribunal in the quantum proceedings to determine the income of the assessee from assignment business was entirely different from the one adopted by the assessee as also the basis adopted by the assessing officer and, therefore, it is clear that the issue of determination of exact income of the assessee from assignment business was not free from debate on which different views were possible. Accordingly, the Tribunal held that in the facts and circumstances of the case, it cannot be said that the assessee had concealed income so as to attract penalty under Section 271(1)(c) of the Act. The decision of the Tribunal in deleting the penalty inter alia on the ground that all the relevant particulars about the income relating to assignment of business were fully furnished and even the accounting policy adopted for determining the said income was disclosed, cannot be faulted - in favour of assessee.
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