No S. 271(1)(c) penalty unless there is evidence beyond doubt of concealment

1. Being a tax resident of UK, the assessee opted to be taxed in India under the provisions of the India UK Double Taxation Avoidance Agreement for the previous year relevant to the assessment year under consideration. As per the assessee under the provisions of the Tax Treaty, income derived by him from supply of network equipment  (hardware and software) to Indian customers qualified as “business profits” and, therefore, not liable to taxation in India under the provisions of Article 7(1) of the Tax Treaty in the absence of a “permanent establishment” (PE) of assesse...