Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 1129 - AT - Income TaxPenalty u/s 271(1)(c) - received 1 million Euros for forgoing the right to sue/initiate legal proceedings for breach of pre-emptive right to purchase shares - decision on nature of the said receipt - Revenue is of the opinion that the said receipt constitutes revenue receipt against the assessee’s claim that it falls in capital zone - AO taxed the same u/s 28(va) - Held that:- We find there is no dispute before us so far as disclosure of information in the return of income is concerned. Assessee furnished all relevant particulars relating to the impugned receipt. Whatever is relied upon by the Assessing Officer in the penalty proceedings, the same are emanated from the return of income furnished by the assessee in normal course. There is also dispute on the nature of the said receipt whether it is a capital or revenue receipt. While the ITAT upheld the revenue nature of the receipt, the Hon'ble High Court admitted the appeal of the assessee. Therefore, we find debtability on this issue. It is also undisputed fact that the Hon'ble High Court has admitted the appeal and the same is pending for final adjudication. Considering all these undisputed facts, we find no default in disclosure of information in the return of income by the assessee. Debatability is evident as narrated by the ld. Counsel for the assessee before us. On the other hand, the Revenue failed to prove the absence of debatability on the issue. Considering the overall factual matters of the case, we are of the opinion that it is not a fit case for levying penalty u/s 271(1)(c) of the Act - Decided against revenue
|