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| The Tax Publishers2019 TaxPub(DT) 3848 (Luck-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where assessee treated amount received from sister concern as loan whereas AO treated it as deemed dividend, imposition of penalty under section 271(1)(c) was unjustified as it was merely a difference of opinion and amount was disclosed by assessee in its balance sheet, which itself was used by AO to determine nature of transaction
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Penalty under section 271(1)(c) - Validity - Loan received from sister concern treated as deemed dividend by AO -
Assessee treated amount received from a sister concern as loan, which AO held to be deemed dividend under section 2(22)(e). AO imposed under section 271(1)(c) for aforesaid addition made in relation to deemed dividend in case of assessee. Held: The undisputed fact was that amount received from sister concern was disclosed by assessee in its balance sheet as loan and from copy of balance sheet itself, AO further enquired about nature of transaction. Therefore, it could not be said that assessee had furnished wrong particulars of income or had concealed any income. Penalty was imposed only on account of difference of opinion between AO and assessee. In a debatable issue and in a case like where assessee had furnished complete details of transaction, penalty could not be imposed.
REFERRED : CIT v. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR 0158 (SC) : 2010 TaxPub(DT) 1683 (SC) Shri P. James v. ACIT [I.T.A No.982/Mum/2015, dt. 22-11-2017] Sadana Brothers Sales (P.) Ltd. v. Asstt. CIT (2011) 46 SOT 1 (Ind)(URO) : 2012 TaxPub(DT) 1112 (Hyd-Trib)
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, LUCKNOW BENCH
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