Registration under s.12AB upheld; CIT(Exemptions) exceeded jurisdiction by deciding taxability instead of preliminary verification and registration di...
Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
ITAT allowed the appeal and set aside the penalty under s. 271(1)(c) imposed by the AO. The Tribunal accepted that certain book entries were false and disallowance for bogus purchases was reduced from 100% to 12.5% to tax the embedded profit, but held that the penalty could not be sustained because the AO charged concealment of income without specifying how concealment occurred. Applying the principle of strict construction of penal provisions, ITAT found a material disconnect between the factual findings and the statutory charge; in absence of a requisite and specific charge of concealment, levy of penalty was held invalid and quashed.
ITAT allowed the appeal and set aside the penalty under s. 271(1)(c) imposed by the AO. The Tribunal accepted that certain book entries were false and disallowance for bogus purchases was reduced from 100% to 12.5% to tax the embedded profit, but held that the penalty could not be sustained because the AO charged concealment of income without specifying how concealment occurred. Applying the principle of strict construction of penal provisions, ITAT found a material disconnect between the factual findings and the statutory charge; in absence of a requisite and specific charge of concealment, levy of penalty was held invalid and quashed.
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