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2019 (1) TMI 1631 - HC - Income TaxPenalty levied u/s 271(1)(c) - reporting of profits by filing wrong estimate of income of expenditure - HELD THAT:- Tribunal pressed in service several grounds for deleting the penalty. It is not necessary to examine such grounds since only on the first ground recorded by the Tribunal, it is possible to sustain the judgment. The Tribunal noted that the addition of ₹ 28.62 crores made by the CIT(A) was on account of reworking of the estimated project cost based on actual cost incurred upto 31.03.2013. The Tribunal noted that against the cost of estimated cost ₹ 1628.02 crores, the CIT(A) adopted a sum of ₹ 1425.19 crores as the actual expenditure incurred on the project till the year end. The Tribunal noted that rest of the calculations made by the CIT(A) were directly related to the change in method of accounting rejecting the assessee's figures and the method of accounting in this regard. The Tribunal, therefore, observed that whatever be the better method of accounting, this was not a case of concealment of income leading to penalty. Tribunal noted that the addition of ₹ 28.62 crores had the genesis in the estimation on one side and preponement of the expenditure on the other, based on change of method of accounting. Thus, in clear terms the Tribunal found that the assessee had neither concealed the income nor concealing the particulars of such income. The penalty was, therefore, correctly deleted.
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