New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (8) TMI 153 - GUJARAT HIGH COURT

2016 (8) TMI 153 - GUJARAT HIGH COURT - TMI - Penalty u/s. 271 (1)(c) - Held that:- Perusal of the order of the CIT (Appeals) on the quantum as well as penalty and perusal of the order of the Tribunal on quantum would persuade us that the entire issue of taxable amount of the principal sum was the highly debatable issue. The CIT (Appeals) noted that the assessee had made full disclosures and presented full accounts which were duly audited. Thus, at best, it was a case of wrong claim in law and n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

following question for our consideration: Whether on the facts and in the circumstances of the case and in law, the Tribunal is right in deleting the penalty of ₹ 1,24,21,048/- imposed u/s. 271 (1)(c) of the Act? 2. As can be seen from the question, the issue pertains to penalty of ₹ 1.24 crores (rounded off) imposed by the Assessing Officer under Section 271 (1)(c) of the Income Tax Act, 1961. The assessee carried the matter in appeal before the CIT (appeals) both on quantum additi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

udgements on the applicability of section 80IA(5) as held in the case of ACIT vs. Ashok Alco Chem Limited 2005(96) ITD 160 and M. Pallonji & Co. vs. Jt. CIT 6 SOT 287. From the submissions of the A.R. it is evident that all the facts were disclosed by the appellant in assessment proceedings and further the explanation filed by the appellant was reasonable and was bona fide. Moreover, mere rejection of the appellant's claim cannot be equated with concealment. In the instant case, it is fo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of High Courts and Tribunals. Hence, I am of the considered opinion that there is no conscious/deliberate attempt to conceal any income on the part of the appellant. I also find that honourable Madras High Court had held in the case of Caplin Point Laboratories Ltd., 293 ITR 524 that by rejection of assessee's claim by relying on different interpretation it could not be said that particulars of income have been concealed. The decision of Delhi High Court in CIT vs. Eicher Goodearth Ltd. rep .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

39;s case as it is not a case where the appellant failed to offer an explanation or the explanation offered by the appellant was found to be false by the AO or where the appellant failed to substantiate the explanation to be bona fide. In the case of the appellant, the appellant had offered the explanation which was bonafide but the AO rejected the same due to different in perception. Hence, the explanation (1) below section 271(1)(c) has no applicability to the facts and circumstances of the ap .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the basis of addition made which had been confirmed by the CIT (Appeals), as full particulars of the claim have been disclosed being fully supported by audit report and claim of netting of income u/s. 80IA and applicability of section 80IA(4) r.w.s. (5) being debatable issue, there being two views, no malafide intention can be attributed to the appellant. The bona fide of the appellant is further established by the fact that in the return of income though it has disclosed income of ₹ 1,98, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppellant's own case penalty levied u/s. 271(1)(c) for AY 2003-04 was deleted by the CIT(Appeals) vide order dated 19/9/2008 and on appeal filed by the revenue, the ITAT had upheld the order of the CIT (A) vide the order dated 13/2/2009 in ITA No. 3902/AHD/2008 similar observations of the A.O that he was satisfied that the appellant has concealed the particulars of the income and/or furnished inaccurate particulars of its income. The Hon'ble ITAT in its appellate order dated 13.02.2009 ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ditions. It appears that the Revenue also approached the Tribunal on the issue of penalty decided against it by the CIT (Appeals). The Tribunal allowed the assessee's appeal and deleted the additions and, in the process, observed that in view of such deletion, the very basis for levy penalty does not survive. The Tribunal, therefore, confirmed the order of CIT (Appeals) deleting the penalty. Following observations of the Tribunal may be noted: 31.1 While deciding the appeal of the assessee i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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