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Commissioner Of Income Tax -I vs Asian Petro Products & on 11 June, 2013

Court in the case of CIT vs. Reliance Petro Products Pvt. Ltd., (supra) also applied to the case of the assessee-company. Merely because the assessee-company had claimed deduction of expenditure without deducting TDS on interest payment which was not accepted by the Revenue, by itself, would not attract the levy of penalty. Mere disallowance of interest for non-deduction of TDS by itself may not be a ground to levy of penalty against the assessee-company. Moreover, the A.O. in the assessment order has initiated the penalty proceedings for furnishing inaccurate particulars of income. However, in the penalty order, the A.O. levied the penalty for concealment of income within the meaning of Explanation-1 to Section 271(1)(c) of the I.T. Act. The A.O. did not initiate the penalty proceedings for concealment of income. Explanation-1 to Section 271(1)(c) would apply in the case of concealment of income and not in the case of furnishing of inaccurate particulars of income. Therefore, there is a contradictory findings given by the A.O. in the assessment order as well as in the penalty order. Merely because the assessee-company 13 ITA.No.1704/Del./2016 M/s. Netambi Value First Services Pvt. Ltd., New Delhi.
Gujarat High Court Cites 2 - Cited by 324 - Full Document

Commissioner Of Income Tax-1 vs Ansal Land Mark Township (P) Ltd on 26 August, 2015

Mahindra Bank Limited. It was, therefore, submitted that no penalty could be levied. It was also submitted that in view of insertion of second proviso to Section 40(a)(i)(a), the assessee- company may not be treated as assessee-in-default of not deducting tax at source because the interest was paid to other reputed NBFC companies by net banking and they are bound to file their return of income under section 139 of the I.T. Act. Since the payee has paid the tax, therefore, assessee-company may not be deemed to be an assessee-in-default. The assessee-company relied upon the decision of the Hon'ble Delhi High Court in the case of CIT vs. Ansal Land Mark Township (P) Ltd., (2015) 377 ITR 635 (Del.). It was submitted that assessee-company made true and full disclosure, therefore, no penalty be levied.

Commissioner Of Income Tax Ahmedabad Iv vs Vishal Madhusudanhai ... on 18 March, 2014

fresh unsecured loan obtained from Banks and NBFC. The Auditor has given details of TDS in the audit report but the Auditor who audited the accounts of the assessee-company did not point-out any infirmity on account of non-deduction of TDS on the amount of interest paid to the Banks and NBFC, otherwise, all the relevant accounts were produced before A.O. The Auditor, therefore, did not point-out the TDS default to the assessee-company. It is not in dispute that payment of interest made to Bank and NBFC were genuine and not excessive or unreasonable interest was found. These facts clearly show that it is not a case of furnishing of inaccurate particulars of income. The A.O. levied the penalty merely because of non-deduction of TDS on interest payments. Therefore, the decisions relied upon by the Learned Counsel for the Assessee in the cases of ITO vs. Shri Vishal Madhushdnanhai Chokshi and CIT vs. M/s. Venus Engineers (supra), applied to the facts and circumstances of the case. It is a case where disallowance is made because of non- deduction of TDS. Therefore, decision of the Hon'ble Supreme 12 ITA.No.1704/Del./2016 M/s. Netambi Value First Services Pvt. Ltd., New Delhi.
Gujarat High Court Cites 3 - Cited by 1 - S G Gokani - Full Document
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