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2018 (3) TMI 151 - HC - Income TaxPenalty u/s 271(1)(c) - whether the sales tax refund figures should be adopted based on the view taken by the Assessee to compute its profits dehors orders of sales tax authorities or it should be based on order of the sales tax authorities? - tribunal deleted penalty - Held that:- We note that it is an undisputed fact that the practice adopted by the Assessee in the subject assessment year has been consistently followed by it in the earlier and subsequent assessment year i.e. offer the sales tax refund as a part of its income when the refund is sanctioned by the Authorities under the Sales Tax Act. Assessee has also pointed out to the authorities during the penalty proceedings, that provisions for sales tax refund, which it had reduced, from its profits to determine taxable income, was in fact offered to tax as income in a subsequent assessment year 2000-01 i.e. on passing of orders of refund by the sales tax authorities. It is particularly to be noted that the above amounts were offered to tax for assessment year 2000-01 i.e much prior to initiation of reopening proceedings by the Assessing Officer for subject assessment year 1998-99. Therefore, in the present facts, the view taken by the Tribunal is a reasonable and possible view.
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