TaxTMI 
TaxTMI 
TaxTMI 
2015 (6) TMI 642
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....by the AO under section 271(1)(c). Brief facts of the case are that the assessee is an apex marketing society in cooperative sector in West Bengal. Its activities include marketing, procurement and distribution of fertilizer and other agricultural inputs like jute, paddy, seeds, and pesticides, etc. through various member primary co-operative societies. In this case, the assessee has filed the return at an income of Rs. 1,32,45,463/- on 03.11.2009. The assessment was completed on the returned income of Rs. 1,32,45,460/- by making certain disallowances and allowing the set-off of the business loss for the assessment years 2003-04 and 2004-05 in the following manner: "Income from business Rs. 5,66,06,763/- Add: Provisions for Audit Fees &....
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....CIT(A). The CIT(A) partly allowed the appeal of the assessee and sustained the penalty in respect of addition made due to provision for sundry debtors and provision for suspense. 3. Before us, the ld. AR has vehemently contended that it is not a case of concealment of particulars of income or filing of inaccurate particulars. The assessee has duly disclosed all the particulars. The provision has been made by the assessee, as per the suggestion of the government auditor, vide their report dated 20.06.2008. The assessee is not aware of and while making the computation, the profit has not to be taken as per the audited profit & loss a/c. and therefore, a bona fide mistake has been committed by the assessee but that bona fide mistake does not ....
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....han, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or furnishing of inaccurate particulars of such income. This is an undisputed fact that the provisions, which have been disallowed by the AO, are not deductible, while computing the total income, as per the provisions of Income-Tax Act. These provisions might have been made on the suggestion of government auditors but will not become an allowable expenditure under the Income-Tax Act. If those provisions were allowable, the assessee would have come in appeal before the appellate authorities. Claiming those provisions as deduction under the Income Tax Act, it shall prove that the assessee has concealed t....
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.... respect of which particulars have been concealed or inaccurate particulars have been furnished has the effect of reducing the loss declared in the return or converting that loss into income, means the tax that would have been chargeable on the income in respect of which particulars have been concealed or inaccurate particulars have been furnished had such income been the total income; (b) in any case to which Explanation 3 applies, means the tax on the total income assessed (as reduced by the amount of advance tax, tax deducted at source, tax collected at source and self-assessment tax paid before the issue of notice under section 148); (c) in any other case, means the difference between the tax on the total income assessed and t....
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....are also not applicable in the case of the assessee, as tax on the total income assessed remains the same and even there is no difference between the tax on the total income assessed and the tax that would have been chargeable as such total income be reduced by the amount of the income in respect of which particulars have been concealed or inaccurate particulars have been furnished. This is a settled law if the computation provision fails, there cannot be any penalty. We have also gone through the decision of the Hon'ble Supreme Court in the case of CIT-vs- Gold Coin Health Food Pvt. Ltd. 304 ITR 308. In this case, we noted that question involved was:- (Whether on the facts and circumstances of the case, the Appellate Tribunal was ri....