Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 308 - HC - Income TaxPenalty u/s 271 (1)(c) - computing the revenue neutral income by the assessee as per provisions of Section 10(38) for the Long Term capital gain - carried forward as per Section 74 - Held that:- Provisions of Section 271 (1)(c) can only be invoked upon satisfaction of the ingredients as laid down in the said section. In the present case, it appears that the Assessee had disclosed in its return the loss of ₹ 80.64 Crores sustained by him and further in the return, note was also given that it reserves its right to carry forward the loss. The same was made by the Assessee keeping in mind its interpretation of Section 10(38) of the Income Tax Act. According to the Assessee, the Assessee bonafidely believed that under Section 10(38), the loss is not required to be considered and only income is required to be considered relying on the phraseology of the said provision. In the present matter, we are not testing the interpretation on the provisions of Section 10(38). However, suffice it to state that the assessee bonafidely and in good faith acted upon the said interpretation. It is also not a matter of debate that on the tax liability also, there was no effect of not setting off the said loss of ₹ 80.64 Crores. The Tribunal has considered the aspect in it's correct perspective. We do not see that the act of the assessee in giving the said note was with some ulterior intention or concealment of income or giving inaccurate particulars. - Decided in favour of assessee.
|