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2019 (9) TMI 1014 - HC - Income TaxPenalty u/s 271(1)(c) - whether failure to disclose income by the Assessee when the project is complete would not amount to furnishing inaccurate particulars of income thereby resulting in concealment of the income by the Assessee ? - case of Assessee throughout that it was under a bonafide belief that the method adopted by it was recognized method for computing income for construction business i.e. project completion method - HELD THAT:- It appears that the project was a subject matter of litigation before this Court. There was a dispute between the Respondent and Chandivali Residents Association and also between the Respondent and Maharashtra Housing and Area Development Authority. There were claims and counter-claims made against the Respondent and the Respondent took a stand that it would be appropriate to defer the decision of revenue recognition till the issue is settled. In fact, in quantum proceedings, when the dispute had come before the Tribunal, there was difference of opinion between the members and third member had to resolve the dispute as to when the project is said to be completed for revenue recognition. This itself would support the case of the Respondent that it was under a bonafide belief that the project would be completed only after the dispute is resolved. Thus, it is not a case of furnishing inaccurate particulars of income to justify invocation of Section 271(1)(c) - no substantial question of law
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