Crown Advertising & Marketing (P) Ltd. v. ITO

INCOME TAX ACT, 1961

--Penalty under section 271(1)(c)--Furnishing of inaccurate particulars of incomeNon-disclosure of liability under section 115JB--Held: Admittedly, the assessee had not taken into account the mandatory requirements of section 115JB while filing its return of income nor did it pay tax thereon. The explanation given by the assessee that it was an inadvertent mistake could not be accepted. The explanation was not bona fide. It was a clear case of furnishing inaccurate particulars of income. Thus, the CIT(A) had rightly confirmed the penalty levied by the AO under section 271(1)(c).

Income Tax Act, 1961 Section 271(1)(c)

Relied:CIT v. Zoom Communication (P) Ltd. 327 ITR 510 (Del). Distinguished:Dilip N. Shroff v. CIT 161 Taxman 221, CIT v. Reliance Petro Products 322 ITR 158 (SC) and Pricewaterhouse Coopers Pvt. Ltd v. CIT 348 ITR 306 (SC).