Penalty u/s 271(1)(c) dont gets automatically attracted, simply because assessee had not offered certain receipts to tax under bonafide belief that the same was not taxable

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Penalty u/s 271(1)(c) dont gets automatically attracted, simply because assessee had not offered certain receipts to tax under bonafide belief that the same was not taxable

Penalty u/s 271(1)(c) dont gets automatically attracted, simply because assessee had not offered certain receipts to tax under bonafide belief that the same was not taxable

Pr.CIT Vs Ashok Kumar Maneklal Parikh
Penalty u/s 271(1)(c) dont gets automatically attracted, simply because assessee had not offered certain receipts to tax under bonafide belief that the same was not taxable
Revenue’s appeal dismissed: BOMBAY HIGH COURT
Whether penalty u/s 271(1)(c) gets automatically attracted, simply because assessee had not offered certain receipts to tax under bonafide belief that the same was not taxable – NO: HC
++ the undisputed position is that identical questions in relation to the brother of the present assessee came up for consideration in Income Tax Appeal No.1812 of 2016, wherein kit was observed that: “….The record suggests that assessee had not offered certain receipts to tax under bonafide belief that the same was not taxable. During the assessment proceedings undoubtedly the assessee had made full representation why according to his belief the receipt was not chargeable to tax. Merely because the AO did not accept such a stand of the assessee, would not automatically permit Revenue to levy penalty. So much, it made abundantly clear by the Supreme Court through series of judgments particularly in case of Reliance Petroproducts Pvt. Limited….The second question pertains to penalty for breach of Section 54EC. Amount involved is extremely small and therefore there is no need to entertain the question without going into merits thereof….” In the result, without recording separate reasons, this present appeal is also dismissed.
Income Tax Appeal No.75 of 2017

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