Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

Sh. Rajeev Kumar Versus ITO, Ward 2 (3) , Muzaffarnagar

Penalty u/s 271(1)(c ) - addition u/s 69 - Held that:- CIT(A) in this case has travelled beyond his jurisdiction in levying the penalty u/s 271(1)(c ) of the Act. It is well settled that penalty can be levied by the Ld.CIT(A) only with respect to enhancement of assessment. In this case there is no enhancement of assessment. Moreover when the AO had initiated penalty proceedings u/s 271(1)(c) of the Act and dropped the same, the Ld.CIT(A) does not have any jurisdiction to reinitiate such proceedi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

passed u/s 271(1)(c ) of the Income Tax Act, 1961 (the Act) on 21.7.2013. 2. Facts in brief:- The assessee is an individual and is in the business of whole sale trading of sugar, ghee etc. He carries on business under the name and style M/s N.R.Trading Co. He filed return of income for the A.Y. 2009-10 on 30.9.2009 declaring net profit of ₹ 87,713/-. The A.O. completed the assessment u/s 143(3) of the Act on 27.12.2011 determining the total income at ₹ 90,06,406/-. He made an additio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd that the assessee might have earned profit of ₹ 70 per sugar bag on total sales of 3090 bags on behalf of M/s Jai Shree Traders, Delhi which works out to ₹ 2,16,300/-. 2.2. The Ld.CIT(A) further states in his appellate order that penalty proceedings u/s 271(1)(c ) of the Act are separately initiated on account of concealment of income of the assessee. Subsequently show cause notice dt. 16.1.2013 u/s 271(1)(c ) of the Act was issued. In this notice the Ld.CIT(A), Muzaffarnagar stat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

le income is more than established, and, therefore, I impose penalty u/s 271(1)(c ) of the Act at @ 300% of tax concealed on ₹ 2,16,300/- which comes to ₹ 1,94,670/-. The AO is directed to issue notice of demand. 3. Aggrieved the assessee is in appeal before us on the following grounds. 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in imposing the penalty u/s 271(1) (c) ,which is not payable under the Income Tax Act. 2. Tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing. 3. That the penalty u/s 271 (1) (c) has been wrongly imposed where the addition was made on estimate basis in the income of the appellant. 4. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in imposing the penalty @300 % of tax due amounting ₹ 1,94,670/- while the tax demand was ₹ 15,602/- only . 5. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and al .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

penalty proceedings u/s 271(1)(c) of the Act and dropped the same, the Ld.CIT(A) does not have any jurisdiction to reinitiate such proceedings or start a fresh proceedings. Thus on this ground alone the penalty is to be quashed. 6. Be it as it may, the Ld.CIT(A) is not clear as to the charge under which he proposes to levy penalty in the show cause notice. The Hon ble Karnataka High Court in the case of CIT vs. Manjunatha Cotton Ginning Factory, 359 ITR 565, wherein the Hon ble High Court consid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Penalty under Section 271(1)(c) is a civil liability. (b) Mens rea is not an essential element for imposing penalty for breach of civil obligations or liabilities. (c) Wilful concealment is not an essential ingredient for attracting civil liability. (d) Existence of conditions stipulated in Section 271(1)(c) is a sine qua non for initiation of penalty proceedings under Section 271. (e) The existence of such conditions should be discernible from the Assessment Order or order of the Appellate Auth .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Assessment Officer to initiate the proceedings because of the deeming provision contained in Section 1 (B). (h) The said deeming provisions are not applicable to the orders passed by the Commissioner of Appeals and the Commissioner. (i) The imposition of penalty is not automatic. (j) Imposition of penalty even if the tax liability is admitted is not automatic. (k) Even if the assessee has not challenged the order of assessment levying tax and interest and has paid tax and interest that by itsel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to be false or when the assessee fails to prove that the explanation offered is not 'bonafide, an order imposing penalty could be passed. (m) If the explanation offered, even though not substantiated by the assessee, but is found to be bonafide and all facts relating to the same and material to the computation of his total income have been disclosed by him, no penalty could be imposed. (n) The direction referred to in Explanation IB to Section 271 of the Act should be clear and without any a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

Forum: Input credit of gst paid on urd

Notification: Seeks to exempt goods imported for organising FIFA under 17, world cup, 2017

Forum: Wrong quote of GSTIN no of buyer in GSTR-1

Forum: Getting upload error message.Cannot upload json file for GSTR1 even after using offline tool V 1.2..

Forum: Issue of Payment Voucher

Forum: filing of unaudited financial accounts

Forum: GST on Notional rent

Forum: need of extention of agm in case of non filing

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

News: Auction for Sale (Re-issue) of Government Stocks

Article: TDS APPLICABILITY ON GOVERNMENT CONTRACTS UNDER GST (Under Section 51 of the CGST Act, 2017)

News: Manmohan takes potshots at note ban, 'hasty' rollout of GST

News: GST on petrol, diesel requires wider discussion: Nitish

Article: WHEN CAN ONE TAKE ITC FOR RCM CASES?

Notification: TDS liability under Section 51 of CGST, 2017 come into force w.e.f. 18-9-2017 - Persons liable to deduct TDS from payment made or credited to the supplier of taxable goods or services specified

Notification: Central Goods and Services Tax (Seventh Amendment) Rules, 2017

Notification: Seeks to extend the last date for filing the return in FORM GSTR-3B for the months of August to December, 2017

Circular: Filing of Special Leave Petition against Orders of Hon'ble High Courts staying Collection of Tax under GST- reg.

Highlight: Exemption u/s 54F - LTCCG - once entire net consideration is invested, the absence of completion certificate cannot be a ground to deny the benefit of deduction.

Highlight: Deduction u/s 10B - initial AY - Mere authorization to enable the Assessee to import material or export produce in the earlier date would not ipso facto tantamount to commencement of substantial activity of ‘manufacture’/’production’.

Circular: Sub:- Procedure to be followed for Import under DEEC/EPCG Scheme- reg.

News: RBI Reference Rate for US $

Article: INELIGIBLE INPUT TAX CREDIT UNDER GST REGIME

Article: MISTAKES IN DRAFTING

Article: All about E-way Bill under GST

Highlight: Provision for sick leave liability - based on the basis of notional figures - such notional liability cannot be allowed as deduction - section 43B(f) is not applicable.

Highlight: Penalty u/s 271(1)(c) - the amended provision of Explanation 5A made applicable w.r.e.f from 1.6.2007 cannot be pressed into service.



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version