Assesment
This query is : Resolved
24 September 2010
Dear all,
My asssessee , a govt co, had received notice for scrutiny. In Income tax return it had discloded interest of Rs. 200000 however It had earned the interest on accured basis 400000.Method of accounting is Mercantile. Now A.O. want to charged penalty under 271 for concealment of income,but my assesee claim that we have not received Tds certificate in time and hence we had not recognised the Income, but we are redy to disclosed it in next return as it is not possible to revised the return.. Kindly tell me Whether A.O is correct??? please quote case Law... Also tell me the procedure followed by A.O to Leavy penalty.
My asssessee , a govt co, had received notice for scrutiny. In Income tax return it had discloded interest of Rs. 200000 however It had earned the interest on accured basis 400000.Method of accounting is Mercantile. Now A.O. want to charged penalty under 271 for concealment of income,but my assesee claim that we have not received Tds certificate in time and hence we had not recognised the Income, but we are redy to disclosed it in next return as it is not possible to revised the return.. Kindly tell me Whether A.O is correct??? please quote case Law... Also tell me the procedure followed by A.O to Leavy penalty.
24 September 2010
Yes AO is correct, I tax and accounting is separate thing. Since the interest was accrued , it has to be shown in book profit. There is no reason why TDS certificate was not recived. It can be submitted at the time of assessment , some how at the time of appeal also.
But i fell there is one remedy to come out.
Whether the payee of interest has taken it as expenditure in his return - is to be confirmed. If the party has not taken as expenditure- indirectly there is no loss of revenue to IT deptt.
Pls go by this line, In case, no loss of revenue, no question of penalty.
But i fell there is one remedy to come out.
Whether the payee of interest has taken it as expenditure in his return - is to be confirmed. If the party has not taken as expenditure- indirectly there is no loss of revenue to IT deptt.
Pls go by this line, In case, no loss of revenue, no question of penalty.
24 September 2010
The A.o can not lived penalty u/s 271C mearely not shown in return.The penalty u/s 271C can not be lived compulsary unless the intention of conceelment of income has not been prooved.If the return can not be revised than rectification u/s 154 can be done if the assessment does not complete.
Message likes :
1 times
25 September 2010
Thanks for reply.. But my question is how rectification of mistake is possible u/S 154 as there is no order pass by A.O?? Further,Mr. Shailesh, in form 26AS there is no tax credit avilable for the same...
26 September 2010
AS PER IT ACT 1961 RECTIFICATION U/S 154 CAN BE DONE EITHER BY A.O. OR ASSESSEE WHEN THE MISTAKE APPRANT ON RECORD.FOT RECTIFICATION U/S 154 ASSESSMENT ORDER OF A.O IS NOT REQIRED.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
