2010 (7) TMI 1113

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.... this issue emerging from the impugned order are that the A.O. in the last paragraph of the order passed u/s 271(1)(c ) has observed that on the facts and in the circumstances of the case, the A.O. was of the opinion that as per provisions of section 36(1)(vii) the sum of Rs. 20,00,000 was not routed through the Profit & Loss A/c in earlier year (s) was not allowable claim under the Act and this is a clear case of concealment of income as well as furnishing of inaccurate particulars of income and penalty provisions u/s 271(1)(c ) are clearly attracted. This is a case of willful and conscious attempt on the part of the assessee company to evade tax. Hence, penalty u/s 271(1)(c ) of the I.T.Act, 1961 is imposed for the assessment year 2005-06....

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....tion in support of the claim made for deduction as bad debt. The learned A.R. argued that there was no tax 'payable' even after the disallowances because of the carry forward losses in the case of the assessee. The learned A.R. also argued that the appellant company was involved in the process of money lending in the earlier years. Since the amount of Rs. 20,00,000 was advanced by the amalgamating company, i.e. Globe Tea & Industries Limited during the course of its money lending business, the loan of Rs. 20,00,000 was transferred to the balance sheet of the assessee company. The A.R. argued that both before and after amalgamation the assessee company remained in the business of money lending. The A.O. in the assessment order disallowed the....