Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 120 - HC - Income TaxReopening of assessment - amount already been included within the fold of assessment by way of an appropriate order under sec 154 - Held that:- Taking action for rectification of an assessment order under section 154 would not debar the department from taking separate steps for reassessment under Section 147 of the Act. We thus do not find reason to interfere with the order of the first appellate authority as the ld. CIT(A) has rightly upheld the action of the AO in computing the income of ₹ 5,53,520/- in the reassessment. - Decided in favour of revenue Grant of exemption u/s 54(1)/(2) denied - Held that:- Requirement under 54E are to be complied with strictly and for failure to make compliance, the benefit cannot be granted to the assessee. In our view, both CIT(A) & Tribunal has not committed any error merely because separate account is opened. The capital account is required under the statute to be opened within six weeks. Therefore, the issue is also required to be answered in favour of the department against the assessee. Penalty u/s 271C (1)(c) - Held that:- In view of the bonafide mistake by the assessee, we are of the opinion that the provisions under 271C will not be attracted therefore, issue no. 3 is required to be answered in favour of the assessee. It is only that the assessee could not follow the procedure exactly. In that view of the matter, basic requirement of 271C (1)(c) of the Act are absent and hence, levy of penalty is unjustified.
|