Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (6) TMI 277 - HC - Income TaxComputation of brokerage expenses - ITAT directed to AO to compute the amount of brokerage at 8.5% on Rs.23,80,000/- and this amount should be deducted from the gross commission receipt - Levy of penalty u/s 271(1)(c) - Held that:- There is no dispute in the present case that the assessee would have incurred expenditure for earning the gross commission, that is the reason why, the Assessing Officer granted only Rs.5,000/-, but the Tribunal fixed it at 8.5%. Therefore, we do not find any error in the order warranting interference - Decided in favor of assessee. Regarding penalty - Held that:- following the Supreme Court judgment in Commissioner of Income-Tax v. Gold Coin Health Food P. Ltd.,[2008 (8) TMI 5 - SUPREME COURT], we hold that penalty can be levied even, when the assessee's return of income is shown as 'loss'. In the present case, the Income Tax Appellate Tribunal merely deleted the penalty as there is no positive income. The Tribunal had not considered the case on merits whether there is violation of provision of Section 271(1)(c) of the Act. Since this Court is of the considered view that penalty can be levied even when the assessee's income of return is shown as loss, we set aside the order of the Income Tax Appellate Tribunal with a direction to the Tribunal to reconsider the matter after giving opportunity to the assesee to enable them to file explanation, whether there is violation of provision of Section 271(1)(c) of the Act and pass orders in accordance with law. - Decided in favor of revenue.
|