CIT v. Haryana Warehousing Corporation

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The Tax Publishers2009 TaxPub(DT) 1855 (P&H-HC) : (2009) 029 (I) ITCL 0369 : (2009) 314 ITR 0215 : (2009) 226 CTR 0124 : (2009) 182 TAXMAN 0107 : (2009) 025 DTR 0194 CIT v. Haryana Warehousing Corporation INCOME TAX ACT, 1961 Penalty under section 271(1)(c) - Leviability -Furnishing of particulars of income Assessee, a warehousing corporation, declared return at nil. It claimed that its entire income was exempt under section 10(29). AO disallowed exemption and imposed penalty under section 271(1)(c) on ground that by filing nil return it had concealed its taxable income. *Held:* Since, deduction claimed by assessee was legitimate and bona fide, as it had disclosed its entire income by depicting clearly various heads under which said income had been earned, therefore, it could not be said that assessee had concealed particulars of its income or furnished inaccurate particulars of its income. Hence, penalty was deleted. Income-tax Act, 1961, Section 271(1)(c) A.Y. : 1993-94 Decision: In favour of assessee. Case Law Analysis:Union of India v. Dharamendra Textile Processors [2008] 306 ITR 277/ 174 (SC), Haryana Warehousing Corporation v. CIT dated 4-10-2007 CIT v. Haryana Warehousing Corporation SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2009 TaxPub(DT) 1855 (P&H-HC) : (2009) 029 (I) ITCL 0369 : (2009) 314 ITR 0215 : (2009) 226 CTR 0124 : (2009) 182 TAXMAN 0107 : (2009) 025 DTR 0194

CIT v. Haryana Warehousing Corporation

INCOME TAX ACT, 1961

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

Assessee, a warehousing corporation, declared return at nil. It claimed that its entire income was exempt under section 10(29). AO disallowed exemption and imposed penalty under section 271(1)(c) on ground that by filing nil return it had concealed its taxable income. Held: Since, deduction claimed by assessee was legitimate and bona fide, as it had disclosed its entire income by depicting clearly various heads under which said income had been earned, therefore, it could not be said that assessee had concealed particulars of its income or furnished inaccurate particulars of its income. Hence, penalty was deleted.

Income-tax Act, 1961, Section 271(1)(c)

A.Y. : 1993-94
Decision: In favour of assessee.

Case Law Analysis:Union of India v. Dharamendra Textile Processors [2008] 306 ITR 277/ 174 (SC), Haryana Warehousing Corporation v. CIT dated 4-10-2007

CIT v. Haryana Warehousing Corporation