Case Law Details
Brief- Merely because the assessee had claimed the expenditure, where claim was not accepted or was not acceptable to the revenue, that by itself would not, attract the penalty under Section 271(1)(c).
Brief Facts of the Assessee:
The Assessee has claimed the exemption under section 10A of the Act Income Tax Act, 1961 (“The Act”). During assessment, the Assessing officer had excluded the income on account of foreign exchange fluctuation for computing eligible income for deduction u/s.10A.
The Assessee had claimed the expenditure of one unit against another unit which was not eligible for deduction u/s 10A of the Act amounting to Rs. 50 Lakhs. The total turnover of the assessee included STPI link charges received amounting to Rs. 8,03,258/-.
The Assessing officer however levied penalty u/s. 271(1)(c) of the Act and the same was confirmed by the CIT(A) on the plea that assessee has wrongly claimed expenditure of eligible unit against other unit.
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Do doubt it is a healthy and delicate judgement