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2015 (11) TMI 1366 - AT - Income TaxPenalty u/s 271(1)(c) - Held that:- The company of this stature can have a mensrea of concealing the particulars of income for a meager sum of ₹ 3 lacs even when all the conditions required for a genuine transaction of commission payments have been brought on record by the assessee company except the agency contract agreement stamp paper, which was purchased on 8th July, 2012 and the clause mentioning the existence of oral agreement between the principal and agent was missing, which could have regularized the service contract w.e.f. 24.11.2001. For this single mistake, it will not be justified to treat the assessee in default and to impose penalty Section 271(1)(c) of the Act refers to the situation whether the assessee has concealed the particulars of his income or furnished inaccurate particulars of such income, which in the case of assessee doesn’t seem to apply because assessee has given complete particulars of his income and expenditure and has paid the commission by banking channel and deducted tax at source and out of the total commission expenditure of ₹ 64,77,790/-, Assessing Officer has already allowed the claim of commission of ₹ 61,77,790/- and nothing contrary to the type of services and payment to the agent has been brought before us and therefore, in these circumstances, we do not find any reason to sustain the penalty imposed u/s.271(1)(c) of the Act at ₹ 1,07,100/- on the assessee and therefore, we delete the same and allow the ground of assessee. - Decided in favour of assessee.
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