Penalty under section 271 must be based on concealment of the particulars of the income and furnishing inaccurate particulars

Last updated: 18 August 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of the case are that the assessee under the head “interest and other charges” had debited an amount of `.2056.50 lakhs on account of “guarantee & other charges”. During the assessment proceedings from the perusal of these details, the A.O. noticed that the assessee has also claimed an amount of `.89,62,329/- in respect of interest paid u/s.220(2) for the A.Y. 1991-92. The A.O. was of the opinion that interest in question was clearly in the nature of income-tax and was not allowable expenditure under the provisions of the Act. The A.O. required the assessee as to why such an interest amount should not be disallowed and added back to the total income. In response, the assessee agreed that the said claim was clearly disallowable and due to bonafide mistake the said interest was grouped under the head “guarantee and other charges”. Therefore, the same was added back in the computation of income. Accordingly, the said claim of `.89,62,329/- stood disallowed.

Citation :
M/s. Reliance Infrastructure Limited (Formerly known as BSES Ltd.) H Block, 1st floor, Dhirubhai Ambani Knowledge City, Navi Mumbai-400 710 PAN NO: AACCR 7446 Q (Appellant) Vs. ACIT-10(1) Aaykar Bhavan, M. K. Road, Mumbai-400 020 (Respondent)

Daily Limit Reached