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2016 (8) TMI 912 - ITAT JAIPURPenalty u/s 271(1)(c) - Addition on account of bad and doubtful debts claimed by the assessee u/s 36(1)(viia) - Held that:- In the instant case, the penalty has been levied for claiming deduction u/s 36(1)(viia) of the Act - Held that:- CIT(A) has given a categorical finding that it has not been shown how by making the claim in respect of Provision for bad and doubtful debts, the assessee has concealed or furnished inaccurate particulars of income. The appellant has explained that the claim was made for liability determined as per the RBI guidelines and auditors have concurred with the said claim of liability of the bank. Further, as there was substantial loss, there was no tax benefit to the assessee. The said explanation has not been shown to be false or malafide and all the relevant facts for computation of income have been disclosed by the appellant in the return of income. The same analogy and finding will apply in respect of contribution to the gratuity fund. We hereby confirm the findings of the ld CIT(A) deleting the penalty levied under section 271(1)(c) of the Act. - Decided in favour of assessee.
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