Case Law Details
DELETION OF PENALTY IN CASE OF BONAFIDE BELIEF OF AN ASSESSEE: ESPECIALLY WHEN THE ACTION OF ASSESSEE IS SUPPORTED BY FACTUAL CIRCUMSTANCES AND A DECISION
Section 271 (1)( c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) deals with the penalty in respect of failure to furnish returns, comply with notices, concealment of income, etc.
Recently, in DCIT vs. American Express India Pvt. [ITA No. 4422/Del./2014, decided on 06.10.2017], one of the ground in appeal was whether on the facts and in the circumstances of the case, the CIT (A) had erred in deleting the penalty of Rs.54,37,000 imposed under section 271 (1 )(c) of the Act, ignoring the fact that patently a wrong claim had been made by the assessee of treating the interest on income tax refund as income derived from the export of articles or things or computer software by 100% Export Oriented Undertaking(EOU) and thereby it amounted to filing inaccurate particulars of income.
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