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| The Tax Publishers2020 TaxPub(DT) 1391 (Del-Trib) INCOME TAX ACT, 1961
Section 271(i)(c)
Statute does not recognize defences on account of 'voluntary disclosure', 'buy peace', 'avoid litigation', amicable settlement etc. to explain away of its conduct under Explanation-1 to section 271(1)(c) .Had the mistake of excess claim of expenses not pointed out by AO, assessee would have taken the benefit. AO could not absolve assessee for filing inaccurate particulars in return of income and pardon him, if assessee accept the mistake and pay tax on the same. Accordingly, levy of penalty was justified.
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Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Disallowances in respect of the excess claim of expenses - Assessee pleading excess claim to be not unintentional
AO made disallowances in respect of the excess claim of expenses and accordingly levied penalty under section 271(1)(c). Assessee contended that excess claim was unintentional and was due to calculation error, and tax thereon has been offered voluntarily for taxation. AO rejected this. Held: Statute does not recognize defences on account of 'voluntary disclosure', 'buy peace', 'avoid litigation', amicable settlement etc. to explain away of its conduct under Explanation-1 to section 271(1)(c) .Had the mistake not pointed out by AO, assessee would have taken the benefit. AO could not absolve assessee for filing inaccurate particulars in return of income and pardon him, if assessee accept the mistake and pay tax on the same. Accordingly, levy of penalty was justified.
Relied: Mak Data Ltd. (38 Taxmann.com 448) NG Technologies Ltd. (57 taxmann.com 389)
REFERRED :
FAVOUR : in assessee's favour
A.Y. :
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