Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Invocation of the extended limitation proviso was examined on whether bona fide belief about Notification No.30/2012 and allocation of tax liability to service recipients supplied a plausible basis for non-payment; the analysis applied authorities requiring fraud, collusion, wilful misstatement or suppression of facts to invoke the extended five-year period. Absent documentary proof of transfer of possession or specific averments proving mala fide conduct or positive acts of suppression, mere non-payment or incomplete returns did not satisfy the threshold, and the extended-period demand was held unsustainable.
Invocation of the extended limitation proviso was examined on whether bona fide belief about Notification No.30/2012 and allocation of tax liability to service recipients supplied a plausible basis for non-payment; the analysis applied authorities requiring fraud, collusion, wilful misstatement or suppression of facts to invoke the extended five-year period. Absent documentary proof of transfer of possession or specific averments proving mala fide conduct or positive acts of suppression, mere non-payment or incomplete returns did not satisfy the threshold, and the extended-period demand was held unsustainable.
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