INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment of income - Leviability -

Issue under dispute was whether Tribunal was correct in holding that issue of depreciation on IPRs could not be made subject matter of assessment under section 153A without appreciating the facts that director of assessee-company had in his statement under section 132(4) during the course of search withdrawn the claim of depreciation on IPRs and hence, assessee was liable for penalty in view of provision of section 271(1)(c). Held: Since claim raised by assessee was a plausible one, mere fact that the same was withdrawn during the search would not give rise to penalty. Further, as Tribunal had broadly proceeded on the basis that the claim was part of original return and therefore, there was no concealment by assessee and further that CIT (A) had allowed such a claim for regular assessment and section 32 also gave rise to debatable issue in this respect, appeal could not be entertained, being no substantial question arose for consideration.

Relied on:CIT v. Reliance Petroproducts (P) Ltd. (2010) 322 ITR 158 (SC): 2010 TaxPub(DT) 1683 (SC)

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2004-05

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