Case Law Details
ACIT Vs Hindustan Coca Cola Beverages Pvt. Ltd (ITAT Delhi)
ITAT Delhi held that as assessee disclosed all the material facts relating to payment of non-compete fee, assessee cannot be accused of furnishing inaccurate particulars of income. Accordingly, penalty u/s 271(1)(c) not leviable.
Facts- The assessee is a resident corporate entity engaged in the business of manufacture and trading of nonalcoholic beverages. In course of assessment proceeding, AO called for various information and details and ultimately completed the assessments u/s. 143(3) of the Act making various additions/disallowances. Based on the additions sustained by learned Commissioner (Appeals), AO initiated proceedings for imposition of penalty u/s. 271(1)(c) of the Act and ultimately passed orders imposing penalty.
Against the penalty orders so passed, the assessee preferred appeals before learned first appellate authority and the same was deleted. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the assessee has disclosed all material facts relating to payment of non-compete fee and the Assessing Officer was conscious of assessee’s claim. That being the case, the assessee cannot be accused of furnishing inaccurate particulars of income. It is relevant to observe, penalty imposed under section 271(1)(c) of the Act under identical facts and circumstances in assessee’s own case in assessment year 2002-03 was deleted by the first appellate authority and the Tribunal upheld the decision of the first appellate authority in deleting the penalty.
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