9911796707
TMI Blog2015 (11) TMI 1385X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 271(1)(c) of the Income Tax Act, 1961. 3. Brief facts of the case are that the assessee has filed its return of income on 1.12.2003 declaring loss of Rs. 1,74,56,039/-. The assessment order was passed under section 143(3) of the Act on 27.3.2006 and income of the assessee was determined at Rs. 9,42,02,619/-. The ld.AO has made three major additions under the following heads: i) Disallowance of Depreciation : Rs.4,83,92,547 ii) Disallowance out of interest : Rs. 79,43,558 iii) Additions u/s.68 being cash credit in form of creditors : Rs.5,53,22,643/- He issued show cause notice under section 274 r.w. section 271(1)(c) of the Act inviting the explanation of the assessee as to why penalty under section 271(1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking steps in the matter winding up was set aside by the Hon'ble Gujarat High Court in January, 2008. These facts were sufficient to hold that the assessee was prevented from sufficient cause from preferring the appeal in time before the Tribunal. Since the existence of the assessee was in liquidation before the Hon'ble Gujarat High Court, therefore, the assessee could not have moved the appeal for the purpose of filing appeal before the Tribunal. Considering the facts and circumstances and the documents placed on record, we have to take pragmatic and liberal approach while condoning the delay in the matter. Further, the assessee explained that in the earlier years the matter is restored to the file of the learned AO for reconsideration. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mons on them. It is in the interest of the assessee company to extend full support to the AO to enable him to enforce the attendance of these two persons. Merely putting the burden on the AO and to sit quietly will not be in its interest. If necessary the AO can issue commission to the other officer of the department where the assessee can also go and confront the two persons. Accordingly, both the appeals are restored to the file of AO for deciding afresh." 7. On consideration of the above discussions, we are of the view since the majority additions were based on the findings given in assessment year 2000-01 in which the matter is restored to the file of the AO for reconsideration by the Tribunal, therefore, the totality of the circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee undergoing in litigations and further that the assessee has later on revived from winding up and further that assessment order was framed in the name of the Official Liquidator would prove that the assessee did not get fair opportunity of being heard in the matter. Considering the totality of the facts and circumstance in the light of the order of the Tribunal for assessment year 2000-01 dated 15-10-2010 (supra), we set aside the orders of the authorities below and restore all the grounds of appeal to the file of the AO for reconsideration of the issue. The AO shall give reasonable sufficient opportunity of being heard to the assessee. 9. In the result, the appeal of the assessee is allowed for statistical purposes. 7. Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in computing the total income or such person as a result thereof shall, for the purposes of Clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed." 8. A perusal of sub-clause (iii) of section 271(1)(c) would indicate that in case an addition is being made to the income of an assessee, and it is established that the assessee has concealed or furnished inaccurate particulars qua that addition, then apart from tax to be payable by the assessee, he would pay an amount equivalent to the tax or three times of the tax as penalty under section 271(1)(c) of the Act. Meaning thereby, the penalty would be computed equivalent to the tax sought to be evaded by the assessee on the addit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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