Order u/s 271(1)(c)

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umakant yadav (Querist)

06 May 2014 Suppose an assessee is having a salaried income from 2 companies A & B. He has received salary of Rs.10 lakhs from A co. & 12 lakhs from B co..While filing his income tax return he has not shown the salary received from co. B on which TDS was deducted of Rs. 360000.Now the assessing officer has leived a penalty under Section 271.He has leived a penalty on tax liability which arises on Rs.10 lakhs+12 lakhs.But on the tax liability which arises on 12 lakhs TDS of Rs. 360000 has already been paid. Whether he should levy penalty only on the amount less deducted as TDS ?? He is referring to Tax evasion .Is his opinion Right ? Is this a tax evasion from the assesse's point of view???

Shivang Chokshi

Shivang Chokshi (Expert)

07 May 2014 tds needed to be done on salary received from both the companies.. if he has not shown salary received from b company and adjusted tds with company a income then he is wrong and 271(1)(c) gets attracted..

any income not shown whose tds is visible will attract 271 only upto the amount of tax on income evaded (upto 3 times tax amt)

this shows that assessee has adjusted tds on company b with tax on salary income of company a.

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umakant yadav

umakant yadav (Querist)

16 May 2014 Respected Sir, Thank you for your assistance But you taken my query slightly wrong. The TDS amount of Rs. 3,60,000 which was deducted on concealed income of Rs. 12 Lacs was not shown in the return filed by the assessee.
So the assessee hide the income of Rs. 12 lacs as well as TDS deducted on that 12 lacs. He claims only tds deducted on Rs. 10 lacs.
Now the A.O. wants to impose the penalty u/s 271(1)(c) on the total additional amount of tax. He is not considering tds of Rs. 3,60,000 which was deducted on concealed income.
As per section, penalty can be impose 100% or Max 300% of tax sought to be evaded and in this case tax sought to evaded was the additional tax amount (-) tds deducted on concealed income but the AO dont want to consider the tds deducted.
in the A.O correct in his vier ????????

Shivang Chokshi

Shivang Chokshi (Expert)

19 May 2014 a.o. cannot do that.. he has to give credit of tds done on salary provided such tds reflects in form 26as

in his 143(3) he will have to write in the last paragraph regarding assessee to be given credit of taxes deducted, any advance tax paid etc.. thus tds on salary income, which is added, will be available to the assessee.

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