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2012 (2) TMI 96 - ITAT MUMBAIPenalty u/s 271(1)(c) – dis-allowance u/s 40A(2)(b) on estimate basis – Held that:- Assessee has made complete disclosure of payment of commission in its relevant tax audit reports. However, Revenue without pointing out any material to show that no such payment was made or the same was denied by the recipient, while invoking the provisions of section 40A(2)(b) allowed the payment of commission on estimate basis at the rate of 5% as against 12.5% claimed by the assessee. Thus, there is no dispute that the dis-allowance of commission is purely on estimate basis. Therefore, we hold that there is no concealment on the part of the assessee which may call for levy of penalty u/s 271(1)(c) and accordingly the penalty stands deleted. See CIT vs. Reliance Petroproducts Pvt. Ltd. (2010 - TMI - 75701 - Supreme Court) – Decided in favor of assessee.
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