Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home

2014 (1) TMI 1868

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of penalty, when the revenue authorities change the head of income. Thus penalty is not exigible. We, therefore, set aside the order of the CIT(A) and direct the AO to cancel the penalty. - Decided in favour of assessee. - ITA No. 4147/Mum/2012 - Dated:- 15-1-2014 - SHRI R.C. SHARMA, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER For the Appellant : Shri Vimal Punmiya For the Respondent : Shri M L Perumal ORDER PER VIVEK VARMA, JM: The instant appeal is filed by the assessee against the order of CIT(A) 13, Mumbai, dated 21.01.2012. 2. The solitary issue pertains to the sustaining of penalty of ₹ 1,27,995/- u/s 271(1)(c) of the Income Tax Act, 1961. 3. The basic facts are that the assessee received rent from: South Indian Coo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... various fora: 1. Reliance Petroproducts vs CIT 322 ITR 158 (SC): Mere making of a claim which is not sustainable in law does not attract penalty under Section 271(1)(c). 2. CIT vs Indersons Leather P. Ltd. 328 ITR 167 (Hon ble P&H High Court): There cannot be any penalty when the AO treats rental receipt under a different head. 3. M/s Eurolink Trading P. Ltd. vs Income Tax Officer-9(1)(3) [ITAT J Bench, Mumbai ITA no. 2925/Mum/2010(AY: 2004-05): There can be genuine difference of opinion in appreciating the principles of law but it does not mean that the assessee deliberately tried to conceal the income. Under the facts of the present case there is no scope for considering that there is concealment of income. In the same way, there is n .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of accounts or concealment of facts, penalty u/s 271(1)(c) cannot be levied. 6. Dy. CIT vs JMD Advisors Pvt. Ltd. (08.02.2008 - ITAT Delhi): A mere change of head of income by the AO in the assessment cannot be construed as concealment as envisaged in Sec. 271(1)(c) so as to attract the penal provisions contained therein. 7. Sabara Impex Limited C/o. G.P. Mehta and Co. vs Income Tax Officer (05.10.2011 - ITAT Mumbai): In case, as a result of the related adjustment, there was no concealment of income, but only change of head, clearly there could not be an occasion to impose concealment penalty u/s 271(1)(c). 8. Pfizer Pharmaceuticals vs DCIT 49 DTR (Mum)(Tri)16: No penalty can be levied for mere change in the head of income. 9. CIT vs Shyam .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... come under one head and the revenue authorities assessed the assessee under a different head. In so far as furnishing of primary material, there was neither any dispute, nor an adverse allegation. The only dispute is that the revenue authorities treated the income not from rent but from house property, this by itself cannot form the basis for the levy of penalty, as held by the above mentioned decisions and other catena of decisions on the issue of cancellation of penalty, when the revenue authorities change the head of income. 12. Respectfully following the above decisions, we are of the opinion that under the given set aside circumstances, penalty is not exigible. We, therefore, set aside the order of the CIT(A) and direct the AO to cance .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map ||