Penalty under sec 271(1)(C) cannot be imposed either for concealment or furnishing inaccurate particulars

Last updated: 04 February 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The relevant facts of the case are that the assessee is a company incorporated in Thailand and was engaged in the business of providing digital broadcast service through its transponders to its customers including Indian residents. For the years under appeal, the assessee declared NIL income in the return filed by it. The claim of the assessee was that its receipt from the business of providing transponder services was in normal course of carrying on business and, therefore, constituted “business profits” in the hands of the assessee. Further, since the assessee did not have a permanent establishment in India, its business profits were not liable to tax in India as per Article 7 of the DTAA between India and Thailand

Citation :
JDIT, Intl. Taxation, Circle 2(2),New Delhi. (Appellant)Vs. Shin Satellite Public Co. Ltd.,C/o Mohinder Puri & Co.,1A-D, Vandana, 11,Tolstoy Marg, New Delhi.AAGCS4481E(Respondent)