Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 268 - ITAT HYDERABADPenalty u/s 271(1)(c) - inaccurate particulars of income by debiting the expenses towards ROC fees to the P&L A/c - revenue or capital nature - Held that:- Assessee has not explained as to why it made the claim for the expenditure in the return of income when the Hon’ble Apex Court laid down the law in the case of Punjab State Industrial Development Corporation Ltd. (1996 (12) TMI 6 - SUPREME Court ) wherein the nature of expenditure claimed by the assessee was held to be capital. We fail to understand why the assessee chose to claim this expenditure as revenue, even though, the accounts were audited by the well known accountants. The law was laid down much before the return of income was filed. Hence, in our opinion, the assessee now cannot absolve itself from levy of penalty u/s 271(1)(c) in view of explanation 1 to section 271(1)(c) by giving an explanation during the assessment proceedings that it disclosed all particulars before the AO or that the claim made by the assessee was due to bonafide error. Now, assessee cannot argue before us that the Apex Court decision itself can be distinguishable simply because the different High Courts had expressed different opinion. Once, the Hon’ble Apex Court laid down decision, it becomes the ‘law of the land’. Hence, the assessee comes within the purview of the explanation 1 of section 271(1)(c) of the Act for levy of penalty for furnishing of inaccurate particulars. Claim made by the assessee to be not due to a bonafide error because ex facie the claim made by the assessee was bogus. - Decided against assessee
|