u/s 171(1)(c)

Whirlpool of India Ltd. v. DCIT

Penalty under section 271(1)(c)–Concealment or furnishing of inaccurate particulars–Excess claim–Ignorance of law

Facts:

AO levied penalty under section 271(1)(c) on account of depreciation claim computed at enhanced cost. Assessee’s case was that inadvertently the assessee claimed depreciation at enhanced cost and overlooked statutory provisions.

Held:

It is well settle principle that ignorance of law is not excuse and cannot be a ground to avoid tax liability. Assessee in the instant case was renown company and its accounts were duly audited by qualifies auditors. Before filing returns of income, the same were verifies by the directors of the company. Therefore, it could not be consider as mere clerical error on part of assessee company. Therefore, levy of penalty was justifies

u/s 171(1)(c)

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