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...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Penalty under Section 271(1)(c) was held inapplicable where an assessee disclosed the Hong Kong branch income and claimed treaty relief on the basis of a plausible legal interpretation. The disallowance resulted from a pure error of law because the India-China DTAA did not extend to Hong Kong at the relevant time, but the Department failed to prove concealment of income or furnishing of inaccurate particulars. The Court held that Dharmendra Textile Processors did not make penalty automatic on every disallowance; the statutory preconditions for penalty must still be satisfied. The penalty deletion was upheld and the Revenue's appeals were dismissed.
Penalty under Section 271(1)(c) was held inapplicable where an assessee disclosed the Hong Kong branch income and claimed treaty relief on the basis of a plausible legal interpretation. The disallowance resulted from a pure error of law because the India-China DTAA did not extend to Hong Kong at the relevant time, but the Department failed to prove concealment of income or furnishing of inaccurate particulars. The Court held that Dharmendra Textile Processors did not make penalty automatic on every disallowance; the statutory preconditions for penalty must still be satisfied. The penalty deletion was upheld and the Revenue's appeals were dismissed.
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