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2016 (4) TMI 211 - AT - Income TaxPenalty u/s 271(1)(c) - loss on sale of fixed asset in its books of accounts and the same was shown in the audited profit and loss account - Held that:- As during preparing computation of income loss on sale of fixed assed being disallowable expenditure was not added back to the profit as per profit and loss account resulting in showing total income less by ₹ 2,07,551/-. On coming across this fact during assessment proceedings itself assessee accepted the mistake and agreed for adding the amount of ₹ 2,07,551/- to the total income. Assessing Officer went ahead imposing penalty u/s 271(1)(c) of the Act at ₹ 70,550/- for concealment of income and furnishing of inaccurate particulars of income. We also find that assessee is a regular income-tax payee and books of accounts are audited u/s 44AB of the Act and income has been declared. Loss on sale of fixed asset at ₹ 2,07,551/- was shown in audited profit and loss account and this impugned loss has been the result of sale of fixed asset and so this transaction certainly has travelled in the books of account and got placed in the audited financial statement and, therefore, there cannot be any concealment of particulars in this case. We also find that Hon’ble Supreme Court in the case of Price Waterhouse Coopers (P) Ltd. vs. CIT (2012 (9) TMI 775 - SUPREME COURT ) has dealt similar issue and while adjudicating the issue provisions towards payment of gratuity which was not allowable expenditure was not added back to the total income even if indicated in the tax audit report and their lordships have decided the same in favour of assessee
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