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Income Tax - Highlights / Catch Notes

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Penalty proceedings against firm and partners u/s 271(1)(c) – ...

Income Tax

August 12, 2014

Penalty proceedings against firm and partners u/s 271(1)(c) – the amounts invested in the Fixed Deposit Receipts belongs to the firm and the income also belong to the firm - penalty on partner is not justified - HC

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  1. Imposition of penalty on partners - penalty on partner is not imposable when the firm is penalised under Rule 25 of the Central Excise Rules, 2002.

  2. Penalty U/s 271(1)(c) - penalty proceedings are distinguished and separate and assessee can raise fresh plea in the penalty proceedings, which has been done in this case - AT

  3. Penalty u/s 271C – reasonable cause - The assessees are partners in a firm – Both the assessees has paid interest to firm without deducting tax at source - No penalty - AT

  4. Demanding duty from the firm and penalties were imposed on the firm & partner both - The appeal filed by the firm cannot be considered as joint appeal - AT

  5. Penalty u/s 271(1)(c) – Tribunal proceeded on hyper- technicalities and acted as though every seizure must entail initiation of proceedings u/s 271 of the Act - no penalty - HC

  6. Disallowance of interest u/s. 36(1)(iii) - partners of the assessee firm had over withdrawn an amount as in excess of what was brought by them in the firm - the assessee...

  7. Penalty u/s 271(1)(c) - recording of satisfaction - mere direction in the assessment order to initiate penalty proceedings - Concealment/furnishing inaccurate...

  8. Penalty u/s 112 - since penalty has been imposed on partnership firm under Section 112 (a), separate penalty on its partner would not be justified - AT

  9. Dissolution of partnership - taxability of sum received by a partner - Any amount paid to a partner as his share on dissolution of the partnership firm cannot be...

  10. Receipt of amount as goodwill on retirement - right of partner in the partnership firm - capital asset u/s 2(14) - extinguishment of such right in the firm - HC...

 

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