INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Due disclosure made by assessee -

AO levied penalty under section 271(1)(c) on the ground of non-offering by assessee based at Netherlands of income by way of arbitration award in relation to the NMPT project Assessee's case was that there was a complete disclosure in respect of the NMPT arbitration award and assessee's site ofice at New Mangalore Port being an independent PE, was not in existence on the date of accrual of income by way of arbitration award and in absence of such PE such income was not taxable as per provision of the India Netherlands Tax Treaty for concerned assessment year 2001-02. Held: Assessee had disclosed arbiration award and explained legal opinion of assessee for not offering the same as taxable income. Thus neither concealment of income nor furnishing of inaccurate particulars of income could be alleged against assessee as argued by assessee and accordingly, penalty was not liable to be levied under section 271(1)(c).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2001-02

INCOME TAX APPELLATE TRIBUNAL RULES, 1963

Rule 34(5)(c)

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