Case Law Details
ACIT Vs Indian Drugs & Pharmaceuticals Limited (ITAT Delhi)
The penalty order reveals that the impugned penalty has been imposed by the Ld. AO for the solitary reason that the assessee made claim for deduction of expenses which were not allowable. The assessee furnished explanation for claiming higher deduction of expenses in the revised computation. The assessee submitted that it filed its original return on estimate basis as the accounts were not finalized and were unaudited adding therein Rs. 70 crores on adhoc basis for various probable disallowances. After the accounts were finalized and got audited the assessee filed a revised computation of income declaring total loss of Rs.105.74 crores. It is revealed from the assessment order dated 30.11.2016 that it was completed on the basis of revised computation submitted by the assessee. Moreover, merely because the claim of the expenses made by the assessee is not allowable as deduction, it cannot form the basis of levy of concealment penalty. It is now well settled that a mere making of the claim which is not sustainable in law, by itself, will not amount to furnishing of inaccurate particulars regarding the income of the assessee.
FULL TEXT OF THE ORDER OF ITAT DELHI
The appeal by the Revenue is directed against the order dated 29.11.2019 of the Ld. Commissioner of Income Tax (Appeals)-44, New Delhi (“CIT(A)”) pertaining to the assessment year (“AY”) 2014-15
2. The Revenue has taken the following ground:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
