Condealment u/s271(1)(c) of the i.t. act 1961
This query is : Resolved
Debabrota Roy
(Querist)
08 June 2014
Dear Sir,
Most recently in the course of scrutiny assessment u/s 142(1), It appears to me that the assessee got civil contract from one of his relatives in the year 2002-03.Against this contract assessee received time to time advance money and showed the same on the Liabilities side of Business Balance Sheet and work done on contract on asset side of Balance Sheet as Work-in-Progress.This continued upto F.Y.2009-10 by that time assessee received RS,18lakh as advance and spent on contract 23 Lakhs.But from F.Y.2010-11 Accountant showed this on Liabilities side of Personal Balance Sheet leaving the WIP on Asset side of Business Balance Sheet.Now my question is that I.T.O. can considr this as concealment since the advance received transferred from Business Balance sheet to Personal Balance Sheet.Plz.reply with case laws.
Most recently in the course of scrutiny assessment u/s 142(1), It appears to me that the assessee got civil contract from one of his relatives in the year 2002-03.Against this contract assessee received time to time advance money and showed the same on the Liabilities side of Business Balance Sheet and work done on contract on asset side of Balance Sheet as Work-in-Progress.This continued upto F.Y.2009-10 by that time assessee received RS,18lakh as advance and spent on contract 23 Lakhs.But from F.Y.2010-11 Accountant showed this on Liabilities side of Personal Balance Sheet leaving the WIP on Asset side of Business Balance Sheet.Now my question is that I.T.O. can considr this as concealment since the advance received transferred from Business Balance sheet to Personal Balance Sheet.Plz.reply with case laws.
CA VISHNU GAVKARE
(Expert)
10 June 2014
yes. It will be as clearly evidenced by the act of the parties.
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Debabrota Roy
(Querist)
10 June 2014
Sir, if you kindly submit some case laws in support of your answer and with explanation why it is coming under concealment u/s 271(1)(c) of the income tax act 1961.Then I will be much obliged
Debabrota Roy
(Querist)
10 June 2014
Sir, if you kindly submit some case laws in support of your answer and with explanation why it is coming under concealment u/s 271(1)(c) of the income tax act 1961.Then I will be much obliged
20 July 2024
Case Laws Perspective: As per the cases cited:
In CIT vs. Suresh Chandra Mittal, the Allahabad High Court emphasized the need for establishing deliberate concealment or furnishing of inaccurate particulars.
The Dilip N. Shroff case reiterated that penalty under section 271(1)(c) should not be imposed merely due to differences in interpretation or change in accounting treatment, unless there is clear evidence of deliberate misstatement.
In CIT vs. Suresh Chandra Mittal, the Allahabad High Court emphasized the need for establishing deliberate concealment or furnishing of inaccurate particulars.
The Dilip N. Shroff case reiterated that penalty under section 271(1)(c) should not be imposed merely due to differences in interpretation or change in accounting treatment, unless there is clear evidence of deliberate misstatement.
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