No Section. 271(1)(c) Penalty If Assessment Order Silent On "Satisfaction" About Concealment: ITAT Delhi

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From: editor@itatonline.org <itatonline.org@gmail.com>
Date: Thu, Jul 19, 2012 at 2:58 PM
Subject: Message from EGroup of SolapurCAs No s. 271(1)(c) Penalty If Assessment Order Silent On "Satisfaction" About Concealment: ITAT Delhi
To: editor@itatonline.org

 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.

Global Green Company Limited vs. DCIT (ITAT Delhi)

S. 271(1)(c) penalty not valid if "satisfaction" not recorded in the assessment order

 

The AO passed an order u/s 143(3) in which he took the view that the assessee had wrongly claimed deduction for a provision made towards non-saleable goods. This was upheld by the CIT(A) & the Tribunal. The AO also imposed penalty u/s 271(1)(c) for concealment / furnishing of inaccurate particulars of income. The CIT (A) upheld it. Before the Tribunal, the assessee argued that penalty was not imposable because (a) in the assessment order, the AO had not recorded a finding that there was concealment/ furnishing of inaccurate particulars of income and so there was no "satisfaction" and (b) there was no finding in the quantum order that the assessee's claim was not bona fide and so penalty was not imposable. HELD upholding the assessee's plea:

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Regards,

Editor,

itatonline.org

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