| The Tax Publishers2019 TaxPub(DT) 2630 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where all necessary details were made available by the assessee with regard to ROC expenses claimed by it then merely because addition made by AO was not challenged in appeal by itself did not invite penalty proceedings.
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Penalty under section 271(1)(c) - Leviability - Disclosure of relevant facts - Addition made by AO not challenged in appeal
Assessee claimed ROC expenses in its Profit and Loss account, which was disallowed by AO holding it to be capital in nature and consequently penalty was also levied on it. Assessee did not challenge said addition, as the amount of disallowance was small as compared to the cost of litigation. It contended that not having challenged the addition by itself did not falsify the claim put forth and hence, penalty could not be levied. Held: In the instant case as all necessary details were made available by the assessee, mere fact that the addition made by AO was not challenged in appeal by itself did not invite penalty proceedings under section 271(1)(c). Thus, penalty levied was quashed.
Relied:CIT v. Reliance Petroproducts (P) Ltd. (2010) 322 ITR 158 (SC) : 2010 TaxPub(DT) 1683 (SC)
REFERRED : The CIT & Oths. v. M/s. Manjunatha Cotton and Ginning Factory & Oths., M/s. V.S. Lad & Sons, (2013) 359 ITR 565 (Kar) : 2014 TaxPub(DT) 202 (Karn-HC),CIT v. Brahmaputra Consortium Ltd. (2012) 348 ITR 339 (Delhi) : 2011 TaxPub(DT) 1937 (Del-HC),CIT v. Zoom Communication (P) Ltd. (2010) 327 ITR 510 (Delhi) : 2010 TaxPub(DT) 1957 (Del-HC),Indian Renewable Energy Development Agency Ltd. v. Dy. CIT (LTU), Saket, New Delhi in (I.T.A. No. 1183/Del/2010, I.T.A. No. 542/Del/2013, I.T.A. No. 1110/Del/2010, I.T.A. No. 371/Del/2013, dt. 29-5-2015),ACIT., Circle-3, Kolkata v. M/s. Khadim India Ltd. in (ITA No. 953-955/Kol/2012, ITA No. 713/Kol/2012, dt. 10-7-2014) : 2014 TaxPub(DT) 3086 (Kol-Trib)
FAVOUR : In assessee's favour
A.Y. : 2008-09
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