Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

The Dy. CIT Circle-1 (3) , Ahmedabad Versus Shri Mukesh Kalubhai Prajapati

Penalty u/s 271(1)(c) - addition u/s 68 - voluntary surrender of income - Held that:- The case of the assessee is squarely covered by the observations of the Hon’ble Supreme Court in MAK data Pvt.Ltd. (2013 (11) TMI 14 - SUPREME COURT) wherein observed that the statute does not recognize defences like ‘voluntary disclosure’, ‘buy peace’, ‘avoid litigation’, ‘amicable settlement’ etc. Thus, even voluntary surrender of income will not always necessarily rescue the assessee from the penalty provisi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sessee has not expressed its handicap anywhere before the lower authorities on the alleged vagueness of notice issued under s.274 r.w.s.271(1)(c) which prevented him in his response in any manner. The onus which lays upon the assessee to rebut the presumption of concealment under Explanation - 1 to s.271(1)(c) has not been discharged. Under the circumstances, the order of the CIT(A) is requires to be reversed and the penalty order of the AO requires to be upheld. - Decided in favour of revenue - .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

; 43 lakhs made under s.68 of the Income Tax Act, 1961 (hereinafter referred to as the Act ). 2. Briefly stated, it was noticed by Assessing Officer (AO) in the course of scrutiny assessment for the AY 2008-09 that assessee has obtained unsecured loan of ₹ 43 lakhs from one M/s.Sudarshan Enterprise. The AO on verification of PAN data on computer found that the PAN of the depositor M/s.Sudarshan Enterprise mentioned in the confirmation file does not pertain to it. Therefore to verify the ge .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uy peace and avoid prolonged litigation. The assessee claimed that disclosure has been made voluntarily and requested for non-initiation of penalty. In these circumstances, the additions were made and penalty was imposed thereon. 3. In the first appeal, the CIT(A) found merit and deleted the penalty of ₹ 14,61,570/- levied by the AO under s.271(1)(c) of the Act. The relevant operative para of the order of the CIT(A) is reproduced hereunder:- DECISION: 4. The submissions made by the appella .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

account. On verification u/s 133(6) of the Act done by the AO, M/s Sudarshan Enterprise denied to have any transactions with the appellant. Therefore, during the assessment proceedings the appellant admitted ₹ 43 lakhs as his undisclosed income and paid taxes upon it. The AO made addition u/s 68 of the Act and penalty proceedings u/s 271(1)(c) were initiated by issuing notice u/s 274 r.w.s. 271(1)(c)of the Act. 4.1 The appellant filed appeal before the CIT(A) against the initiation of pena .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sued on 28-10-2010, whereas penalty was imposed on 20-03-2014. The contention of the appellant is not as per the provisions of the Act, as the appeal filed by the appellant was pending before the CIT(A), which was decided on 16-04-2012 and the penalty has, been imposed on 20-03-2014 which is within the time period allowed u/s 275 of the Act. Therefore, this contention of the assessee is dismissed. ii) The second argument taken by the appellant is that the notice dtd, 28-10-2010 issued u/s 274 r. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d that the AO has not specifically mentioned whether the appellant concealed particulars of income or furnished inaccurate particulars of income. Even in the penalty order dtd. 20-3-2014, there is no mention for which default the penalty has been imposed. As mentioned by the appellant, the jurisdictional Hon'ble High Court of Gujarat, Ahmedabad in the case of CIT vs. White Ford India Ltd. adjudicated that where no clear finding was recorded by the AO whether assessee was guilty of concealing .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent proceedings with specific request to buy peace of mind and avoid further litigation. The appellant relied upon the case of Sir Shadi Lal Sugar & General Mills Ltd. (168 ITR 705) (SC) in which it has been held that there may be 101 reasons for agreeing to additions but that does not follow the conclusion that amount agreed to be added was concealed income. On going through the assessment order and penalty order, it is found that the appellant has agreed for the additions with the specific .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/2011. Keeping in view the facts of the case and case laws cited, the penalty levied by the AO is not found justified, therefore, it is deleted. 4. Aggrieved, the Revenue is in appeal before the Tribunal. 5. None appeared on behalf of the assessee. It is seen from the record that the notices were sent on various occasions in the past to the assessee. However, the assessee has failed to appear on the appointed date. The notice was served through the Income Tax Department also without any avail. 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

voluntarily at all. The request of the assessee not to impose penalty was not accepted by the AO at all. The Ld.DR referred to the decision of the Hon ble Supreme Court in the case of MAK Data Pvt Ltd. vs. CIT 358 ITR 593(SC) and submitted that the aforesaid decision squarely governs the issue. 7. We have carefully perused the orders of the authorities below as well as the submissions made on behalf of the revenue. We observe that the additions have been made under s.68 of the Act as purported .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

News: Notification Issued For GST Actionable Claim On Branded Food Products

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Forum: Duty Drawback- Urgent

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Forum: GST Invoice

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



|| 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