Section 271(1)(c) Penalty Upheld Due to Non-Bona Fide Claims & Failure to Disclose Income

Soma Textiles & Industries Ltd. Vs DCIT (ITAT Ahmedabad) The appeals were filed by the assessee against orders of the Commissioner of Income Tax (Appeals) confirming penalties imposed under Section 271(1)(c) of the Income-tax Act for Assessment Years 2009-10 and 2010-11. For Assessment Year 2009-10, penalty of ₹1,38,90,556 was levied on various additions including adjustment in arm’s length price (ALP) for international transactions, disallowance of GDR issue expenses, disallowance of miscellaneous (MODVAT) expenses, addition of foreign exchange gain, and TDS reconciliation differences...