No concealment penalty if expenses disallowed by AO were otherwise allowable in next FY: HC

No concealment penalty if expenses disallowed by AO were otherwise allowable in next FY: HC

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No concealment penalty if expenses disallowed by AO were otherwise allowable in next FY: HC

 

ranite Gate Properties (P.) Ltd. v. PCIT – [2019] 102 taxmann.com 236 (Delhi)
 
 
Assessee-company was engaged in real-estate development. It had commenced construction of two housing projects.
 
 
 
 It incurred indirect project expenses like cost of construction and development and claimed deduction of same. 
 
 
 
Assessing Officer (AO) disallowed the expenses and imposed penalty under section 271(1)(c) upon it.
 
 
It was held that expenditures disallowed during relevant assessment years were otherwise eligible and same were allowed in next assessment year.
 
 Further, full details with regard to those expenses were disclosed by assessee in return of income and figures given in columns and heads were not disturbed by AO. 
 
He also did not make any addition by doubting and disturbing figures and amounts mentioned. 
 
 
Therefore, imposition of penalty under section 271(1)(c) was to be set aside.

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