Penalty order under section 271 (1) (c)
This query is : Resolved
05 April 2016
Dear Sir,
I have received penalty assessment order under section 271(1)(c).
Penalty was raised for disallowing of Provision for doubtful debts of Rs. 5,30,47,066/-.
Our assessment was completed on 28.11.2011 determining loss of Rs. 10,87,20,428/-
sir, while preparing computation of Income for the A.Y. 2009-10 due to oversight our auditor has missed out to add back this provision of doubtfull debts in the income.
Now the assessing office is saying that "penalty under section 271(1)(c) is a civil liability. willful concealment is not an essential ingredient for attracting civil liability as is the case in the matter of prosecution under section 276C" and hence the imposition of penalty in this case is a natural culmination of the assessment proceedings.
An hence penalty of Rs. 1,79,82,956/- is raised @ 33.33% of income concealment.
Please advise, how i can overcome this problem.
Regrads,
Shrishail.
I have received penalty assessment order under section 271(1)(c).
Penalty was raised for disallowing of Provision for doubtful debts of Rs. 5,30,47,066/-.
Our assessment was completed on 28.11.2011 determining loss of Rs. 10,87,20,428/-
sir, while preparing computation of Income for the A.Y. 2009-10 due to oversight our auditor has missed out to add back this provision of doubtfull debts in the income.
Now the assessing office is saying that "penalty under section 271(1)(c) is a civil liability. willful concealment is not an essential ingredient for attracting civil liability as is the case in the matter of prosecution under section 276C" and hence the imposition of penalty in this case is a natural culmination of the assessment proceedings.
An hence penalty of Rs. 1,79,82,956/- is raised @ 33.33% of income concealment.
Please advise, how i can overcome this problem.
Regrads,
Shrishail.
05 April 2016
Supreme court decision in Dharamendra Textile [166 Taxman 65] supports the view of AO. However try in appeal on the ground that there is 'no loss of revenue' as a consequence of the addition.
05 April 2016
Sir, is there any judgement regarding if no loss of revenue then no penalty can levied.
After adding back this provision there is no any revenue loss as already there is huge loss.
After adding back this provision there is no any revenue loss as already there is huge loss.
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