https://www.taxtmi.com/caselaws?id=404159 The High Court held that a Trust was not entitled to exemption under Sections 11 and 12 of the Income Tax Act as the Katha Manufacturing Factory was not held under trust, rendering it ineligible. Penalty proceedings under Section 271(1)(c) were initiated but later deleted as the Trust's claim was debatable, following precedents that penalties cannot be imposed on debatable assessments. The court emphasized that penalties require proven concealment of income, not mere rejection of claims by tax authorities. The appeal was dismissed, upholding the deletion of the penalty. en-us Fri, 12 Feb 2021 00:00:00 +0530 Tue, 16 Feb 2021 19:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404159 The High Court held that a Trust was not entitled to exemption under Sections 11 and 12 of the Income Tax Act as the Katha Manufacturing Factory was not held under trust, rendering it ineligible. Penalty proceedings under Section 271(1)(c) were initiated but later deleted as the Trust's claim was debatable, following precedents that penalties cannot be imposed on debatable assessments. The court emphasized that penalties require proven concealment of income, not mere rejection of claims by tax authorities. The appeal was dismissed, upholding the deletion of the penalty. Case-Laws Income Tax Fri, 12 Feb 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404159