https://www.taxtmi.com/caselaws?id=249097 The Tribunal set aside the penalty imposed under section 271(1)(c) of the Income Tax Act for disallowance of rent payments under section 40(a)(ia). The Tribunal emphasized that mere disallowance in quantum proceedings does not automatically justify penalty imposition. It was found that the payment made to the Court Receiver was for business purposes, not royalty, and the disallowance was limited in a prior order. Citing the Reliance Petro Products case, the Tribunal ruled that full disclosure by the Assessee on claimed expenditures precludes penalty imposition. The matter was remanded to the Assessing Officer for reconsideration, leading to the penalty's reversal. en-us Fri, 13 Jun 2014 00:00:00 +0530 Fri, 04 Jul 2014 16:40:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249097 The Tribunal set aside the penalty imposed under section 271(1)(c) of the Income Tax Act for disallowance of rent payments under section 40(a)(ia). The Tribunal emphasized that mere disallowance in quantum proceedings does not automatically justify penalty imposition. It was found that the payment made to the Court Receiver was for business purposes, not royalty, and the disallowance was limited in a prior order. Citing the Reliance Petro Products case, the Tribunal ruled that full disclosure by the Assessee on claimed expenditures precludes penalty imposition. The matter was remanded to the Assessing Officer for reconsideration, leading to the penalty's reversal. Case-Laws Income Tax Fri, 13 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249097