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2009 (11) TMI 60 - HC - Income TaxPenalty u/s 271(1)(c) - In its return of income, the assessee claimed deduction under Section 80 IA of the Act in respect of profits derived from trading turnover i.e. trading in the raw wool and knitted cloth. The return of income filed by the assessee was accompanied by Audited Balance Sheet, Profit & Loss Account and an Audit Report in Form No.10CCB relating to the claim of deduction under Section 80 IA of the Act. The Assessing Officer denied the said deduction to the assessee while coming to the conclusion that deduction under Section 80 IA was allowable only in respect of income derived from manufacturing of goods and not from trading in the raw wool and knitted cloth. The Assessing Officer also initiated the penalty proceedings under Section 271(1)(c) of the Act for furnishing inaccurate particulars of income in its return with an intention to evade tax. – held that - the ITAT has rightly come to the conclusion that the assessee did not deliberately or consciously concealed the true particulars of income or furnished inaccurate particulars of income. – penalty not to be imposed – decided in favor of assessee
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