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2016 (5) TMI 15 - ITAT DELHI

2016 (5) TMI 15 - ITAT DELHI - TMI - Penalty u/s 271(1)(c) - Held that:- It is seen that initially during the assessment proceedings, addition was made by the Assessing Officer because as per him, the brought forward losses were insufficient to cover the business profits for Assessment Year 2008-09. However, with the First Appellate Authority allowing the appeal of the assessee for Assessment Year 2005-06, the business losses to be set off against the income for Assessment Year 2008-09 have agai .....

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n the assessee when such assessee has concealed the particulars of his income or has furnished inaccurate particulars. However, in the present appeal, there is nothing on record to hold that the assessee has either concealed the particulars of its income or furnished any inaccurate particulars thereof. We accordingly decide the issue in favour of the assessee and direct the Assessing Officer to delete the penalty. - Decided in favour of assessee - ITA No. 423/Del/2014 - Dated:- 31-3-2016 - Shri .....

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essment in this case was completed in terms of order dated 29.12.2011 passed u/s 153C read with section 153A/143(3) of the Income Tax Act, 1961 at a total income of ₹ 18,61,810/- as against NIL income declared by the assessee in its return of income filed in response to notice issued u/s 153C read with section 153A of the Act. During the assessment proceedings, the Assessing Officer noticed that the assessee had set off the brought forward business losses of ₹ 18,61,812/- of assessme .....

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he losses. All the available business losses and depreciation had been set off from the income of A Y. 2007-08. Hence no business loss and depreciation is available with the assessee to set off the losses from die income there is a show cause why the losses claimed and set off from the income should not be disallowed". In response to the show cause notice, vide letter dated nil, the assessee submitted as under: "That in the year under consideration brought forward losses shown by the a .....

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and depreciation had been set off against the income of Assessment Year 2007-08 and hence, there was nothing remaining to be set off against the income of the year under consideration i.e. Assessment Year 2008-09. Hence, the set off of brought forward business losses amounting to ₹ 18,61,812/- of Assessment Year 2005-06 against the business income of Assessment Year 2008-09 was added back to the income of the assessee and the assessment was completed at the taxable income of ₹ 18,61, .....

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find that when the appellant filed its return of income for the assessment year under consideration in response to notice u/s 153C r.w.s. 153A on 14.10.2011, its assessment u/s 147 r.w.s. 143(3) had already been competed vide order dated 28.12.2007 and the loss to be carried forward was determined at ₹ 1,63,200/- as against the returned loss of ₹ 29,97,850/-. Thus, when the return of income in response to notice u/s 153C r.w.s. 153A of the I.T. Act for the assessment year under cons .....

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for the assessment year 2005-06. The appellant failed in its duty by not disclosing the correct particulars of brought forward losses of assessment year 2005-06. By doing so the appellant committed a breach of its duty, which entails the penal consequences contemplated under section 271(1)(c) of the I.T. Act, 1961. Therefore, the Assessing Officer was justified in holding the appellant to be in default within the meaning of section 271(1)(c) of the I.T. Act, 1961 and imposing penalty under the .....

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rmined in this case was ₹ 5,75,299/-. Therefore, the additional tax liability determined in terms of order u/s 153C r.w.s. 153A/143(3) was ₹ 3,83,6695/- which could only be attributed to the tax sought to be evaded. Therefore, the Assessing Officer in directed to modify the quantum of penalty imposed u/s 271(1)(c) and restrict the same to ₹ 3,83,695/-. The appellant thus gets a relief of ₹ 1,91,605/-. 5. Now, the assessee is in appeal before us and has raised the followin .....

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of brought forward losses for assessment year 2005-06" ignoring the evidences and submissions adduced by the appellant during assessment and penalty proceedings. 4. The above grounds of appeal are without prejudice to each other. 5. The Appellant craves leave to add, alter, amend and/or modify the above grounds of appeal. 6. The Ld. AR submitted that in this case, the return was filed u/s 153C and in the return of income, the brought forward loss of ₹ 18,61,812/- (remaining after set .....

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w our attention to page 16 to 19 of the Paper Book which contain a copy of the order of the First Appellate Authority i.e. the Ld. CIT(A)-I, Patna wherein vide his order dated 04.07.2014, the Ld. CIT(A) has deleted the addition of ₹ 27,47,526/- for Assessment Year 2005-06. It was further submitted that as a consequence of the deletion, the carried forward losses for Assessment Year 2005-06 will be increased to the tune of ₹ 27,47,526/- which will be more than sufficient to offset the .....

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