13 January 2009
At the tome of scrutiny of a pvt. company it was seen that a shareholder holding more than 90% holding had taken loan from the company. That loan amount was held to be deemed dividend u/s. 2(22)(e).Thereafter a notice u/s. 148 was issued to the shareholder, who in response to same filed a revised return and paid tax in relation to the amount held as deemed dividend.Against that revised return notice u/s.143(2) was issued.Assessment was completed accepting the total income as per revised return.But now A.O.has levied penalty for concealment u/s. 271(1)(c). Is A.O.'s contention right? How can the assessee cancel the penalty levied?
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