Case Law Details
M/s. V.K. Lalco Pvt. Ltd. Vs DCIT (ITAT Mumbai)
In this case the penalty was levied for wrong claim of TDS in the return of income to the tune of Rs.3,48,120/- without offering the corresponding income to tax. In fact this TDS did not belong to the assessee but appeared in the form No. 26AS and accordingly claimed by the assessee. Arguments of the Ld. Counsel was that in any case even if the TDS is claimed in the return of income, the credit is only allowed after verification of the TDS as appearing in form 26AS. We find that the only addition made in the assessment order was in respect of disallowance under section 14A of the Act. Now the only issue before us is that where there is no addition made to the income of the assessee by the AO in the assessment framed u/s 143(3) of the Act whether the penalty for concealment of income or for furnishing of inaccurate particulars of income could be levied. In the present case before us during the assessment proceedings the AO rejected the claim of the assessee for the TDS of Rs.3,48,120/- and there was no addition made to the income of the assessee of any kind whatsoever qua this TDS claim. In our view, the penalty under section 271(1)(c) of the Act can only be initiated and levied if there is a concealment of income or furnishing of inaccurate particulars of income on the part of the assessee. However, in this particular case it was a wrong claim of TDS and thus the provisions of section 271(1)(c) of the Act do not apply to the present case.
Even for the purpose of levying of penalty, the mechanism provided in the section itself pr
FULL TEXT OF THE ITAT JUDGEMENT
The present appeal has been preferred by the assessee against the order dated 17.09.2018 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2013-14.
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