Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
The ITAT set aside the penalty imposed under s.271(1)(c), holding that recharacterisation of a loan as deemed dividend under s.2(22)(e) and a s.40A(3) disallowance did not amount to furnishing of inaccurate particulars where the relevant facts were disclosed in audited financials and during assessment proceedings and pre-existing judicial decisions supported the assessee's position. The Tribunal noted that reliance on authoritative decisions available before the assessment and penalty orders justified the assessee's stance, and that mere disallowance under s.40A(3) did not establish culpable inaccuracy. Penalty under s.271(1)(c) deleted and the assessee's appeal allowed.
The ITAT set aside the penalty imposed under s.271(1)(c), holding that recharacterisation of a loan as deemed dividend under s.2(22)(e) and a s.40A(3) disallowance did not amount to furnishing of inaccurate particulars where the relevant facts were disclosed in audited financials and during assessment proceedings and pre-existing judicial decisions supported the assessee's position. The Tribunal noted that reliance on authoritative decisions available before the assessment and penalty orders justified the assessee's stance, and that mere disallowance under s.40A(3) did not establish culpable inaccuracy. Penalty under s.271(1)(c) deleted and the assessee's appeal allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4916 
