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2015 (2) TMI 398 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance of ₹ 22,79,123/- being compensation paid to M/s Hyderabad Industries Ltd. pursuant to the settlement between the parties - Held that:- This is an issue where the question is the year of allowability of the particular claim of the assessee. There is a genuine difference of opinion on this issue which is debatable. Just because the assessee has made the claim during the current financial year and this claim has been disallowed, in our view penalty cannot be imposed on the ground of furnishing of inaccurate particulars of income. Thus cancel the order of the Ld. CIT(A) confirming the penalty levied u/s 271(1)(c) - Decided in favour of assessee. Disallowing of living allowance paid to Russian expats by invoking the provisions of Section 40(1))(ia) - Held that:- When the Commissioner of Income Tax (TDS) is of the view that no TDS need be made on these living allowances paid to the Russian experts, the question of sustaining, the disallowance u/s 40(a)(ia) does not arise. The contention of the Ld. DR that the order of the first Ld. CIT(TDS) is for certain other assessment years and hence cannot be applied to this assessment year is devoid of merits on the issue involved is the same. In the result we delete the disallowance u/s 40(a)(ia)- Decided in favour of assessee.
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