03 May 2009
An assessee neither declared rent income (chargeable under income from house property) nor claimed credit for the TDS on such rent income in his ROI.
1) On what amount would the “tax sought to be evaded” calculated for purpose of section 271(1)(c) of the I. T. Act? a) Gross rent received or b) Income chargeable under the head income from house property i.e. gross rent less deduction u/s 24(a).
2) Would the TDS on such rent income (for which no credit was claimed in ROI) be reduced from the tax on rent income to arrive at the “tax sought to be evaded” for purpose of section 271(1)(c) of the I. T. Act?
03 May 2009
1) Calculation of tax sought to be evaded begins from the tax on total income assessed which,in your case, means after considering claim U/s 24. 2) TDS will be reduced to arrive tax on total income assessed. In other words tax sought to be evaded will reduce to the extend of TDS.
04 May 2009
penalty u/s 271(1)(c) is on the tax demanded, hence if after the claim of TDS there is no demand of tax, no penalty can be imposed. thats why in some cases it is said re opening of assessment is a blessing in disguise...
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