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2014 (1) TMI 656 - AT - Income TaxPenalty u/s 271(1)(c) - Bad debts relating to amount given to suppliers - Held that:- Merely because the claim of the assessee was disallowed would not automatically lead to the conclusion that the assessee has furnished inaccurate particulars of income or conceal the particulars of income - The assessee has explained and given the complete details of the advance given to the suppliers - Even if the claim of the assessee has not been accepted by the A.O the same would not automatically attract the provisions of Section 271(1)(c). Bad debts relating to advance given for purchase of car - Held that:- When the assessee has furnished the complete detail and explanation about the claim and advance given then it cannot be said that the assessee has concealed the income or furnished inaccurate particulars of income - This issue is also a debatable issue and does not fall in the category of a bogus or absolute incorrect claim. Expenses for repair and maintenance - Held that:- The assessee has given the full details of the expenditure incurred on the repair and maintenance - When no finding by the authorities that any new asset came to existence as a result of this expenditure then the claim of the assessee cannot be termed as bogus or inherently not permissible - The claim is a highly debatable issue as well as a bonafide claim of the assessee and disallowance of the same would not lead to the conclusion that the assessee has concealed income or furnished inaccurate particulars of the income on this account - Decided against Revenue.
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