Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 999 - DELHI HIGH COURTPenalty u/s 271(1)(c) - Enhancement of disallowance u/s 43B by assessee - course-correction was carried out with the submission of a revised tax audit report - ITAT set aside penalty levy - HELD THAT:- Tribunal correctly noted that there is no dispute about the fact that a specific query with regard to the issue concerning disallowance under Section 43B of the Act was raised by the AO for the first time via notice dated 21.11.2016 issued under Section 142(1) of the Act. Therefore, as correctly argued by assessee it was not, as is noted by the AO, that the disallowance under Section 43B of the Act was not correctly recorded in the tax audit report and the respondent/assessee made a course-correction only thereafter. What is not in dispute is that, at the relevant time, there were judgments of GUJARAT CYPROMET LTD. [2006 (8) TMI 664 - GUJARAT HIGH COURT] which took the view that favoured the respondent/assessee - it cannot be said that the enhancement of disallowance under Section 43B of the Act carried out by the respondent/assessee was not voluntarily. Decided in favour of assessee.
|