In the absence of any overt act, which disclosed conscious and material suppression, invocation of Explanation 7 to s. 271(1)(c) in a blanket manner could not only be injurious to the assessee

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IT Judgements

IT Judgements on Pr CIT vs. Verizon India Pvt. Ltd (Delhi High Court)

S. 271(1)(c) Penalty: In the absence of any overt act, which disclosed conscious and material suppression, invocation of Explanation 7 to s. 271(1)(c) in a blanket manner could not only be injurious to the assessee but ultimately would be contrary. To the purpose for which it was engraft in the statute. It might lead to a rather peculiar situation. Where the assessees who might otherwise accept such determination may be force to litigate further to escape the clutches of Explanation 7

The Court is also of the opinion that in the absence of any overt act, which disclose conscious and material suppression, invocation of Explanation 7 in a blanket manner could not only be injurious to the assessee but ultimately would be contrary to the purpose for which it was engraft in the statute. It might lead to a rather peculiar situation where the assessees who might otherwise accept such determination may be forced to litigate further to escape the clutches of Explanation 7….

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