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2014 (6) TMI 107 - AT - Income TaxDeletion of penalty u/s 271(1)(c) of the Act – Bogus purchases - Disallowance of depreciation – Bad debts written off - Public issue expenses - Held that:- Either the additions on which the penalty has been levied were restored back for reconsideration or decided in assessee’s favour - also in issue of disallowance of depreciation on tangible assets was restored back to the file of the AO to be directed as per the directions given in A.Y. 2002-03 - the issue of bogus purchases has also been decided by the Tribunal in favour of the assessee - The entire disallowance was deleted - In respect of third addition on which the penalty in question u/s.271(1)(c) has been levied pertained to “public issue expenses”, which has also been decided by the Tribunal by holding that a view already taken in assessee’s own case should be followed for this year as well - CIT(A) has deleted the penalty after considering the merits of each addition. As far as the onus on the assessee was concerned for the purpose of levy of penalty, according to CIT(A) all the relevant particulars were disclosed and there was no concealment of facts and the bad debt was erroneously disallowed - the assessee had a bona fide belief that the claim would be allowed in terms of Section 35D of IT Act - On the one hand the quantum additions have not been confirmed by the Tribunal and on the other hand the CIT(A) has discussed the merits of each addition, while disposing off the penalty issue - thus, the deletion of the penalty is confirmed – Decided against Revenue.
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