Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1378 - AT - Income TaxPenalty levied u/s 271(1)(c) - disallowance u/s 43B because of technical reason of non payment of the amount before the due date of filing the return of income under section 139(1) - Held that:- Once all the relevant details which were disclosed by the assessee in the return of income and books of account were found to be correct, then the case would not fall in the category of furnishing inaccurate particulars of income or concealment of income. It is also not in dispute that the VAT was due and payable and, therefore, the same is an allowable business expenditure except the condition under section 43B that the assessee has to pay the said amount on or before the due date of filing the return of income under section 139(1). Once the claim of the assessee is not found to be bogus or false but because of the reason that the assessee could not pay the amount as required under section 43B, the same was to be disallowed. The disallowance under section 43B is only because of technical reason of non payment of the amount and not because of the reason that the claim itself is not an allowable claim - there will be no revenue effect due to the disallowance made for the year under consideration and the claim was allowed in the subsequent year except on account of interest. As relevant details and facts were disclosed by the assessee and available before the AO during the course of assessment proceedings, then the mere disallowance under section 43B would not amount to concealment of income or furnishing inaccurate particulars of income attracting the levy of penalty under section 271(1)(c). Hence, we delete the penalty levied by the AO on this account. - Decided in favour of assessee.
|