Case Law Details
Harish P. Mashruwala Vs. Asst. CIT (ITAT Mumbai)- In this case, tax sought to be evaded is very clear as the tax rate applicable is 30% whereas the assessee has paid 20%. The tax sought to be evaded was because of the lower rate of tax paid and not because of any addition to the income and, therefore, provisions of Explanation 1 are not applicable. The penalty is imposable under the main provision and there is no need to refer to any Explanations. As regards the merit of the case, the claim of the assessee that amount paid for receiving the gift was from the cash received on surrender of tenancy right is not supported by any evidence.
The gifts had also been received much before the surrender of tenancy. The amount has therefore been rightly assessed as income from other sources attracting tax rate of 30%, which has also been affirmed by the Tribunal in the quantum appeal. The assessee had sought to evade tax by paying tax at lower rate. The penalty in our view is imposable as held earlier under the main provisions of section 271(1)(c).
IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES “F”: MUMBAI
ITA No. 4996/Mum/2007 Assessment years 1996-97
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