TaxTMI 
TaxTMI 
2015 (9) TMI 1517
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....re him within the prescribed time limit. 1(b) The ld.CIT(A) further erred in dismissing the said appeal on procedural ground without affording an opportunity to the Appellant to substantiate the Appellant's explanation then given before the ld.CIT(A) to the effect that the filing of Appeal before him was considerably delayed "on account of the death of the Accountant" as the said accountant was in exclusive employment in the Appellant' for a long period of 35 years and also that the Appellant is in a position to produce the copy of the said accountant's "death certificate". 2.On the facts and in the circumstances of the case and in law, the ld. Commissioner of Income tax(Appeals) erred in confirming the order u....
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....essee was asked as to why the penalty proceedings u/s. 271(1)(c) should not be levied. In its reply the assessee stated that difference of income was due the re-computation of WIP by the AO. After considering the submissions of the assessee, the AO held that the assessee was following PCM, that the profit earned out of its activities was liable for taxation as per the system followed by it, that it used to reflect year wise figure of WIP in the statement of accounts of each AY., that the correct profit was arrived at only after proceedings were initiated u/s.147 of the Act. Invoking the provisions of section 271(1)(c)Expl.4(a)of the Act, he levied a penalty of Rs. 10.87 lakhs for concealing the income and furnishing inaccurate particulars. ....
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....held that while filing return of income it had claimed that the projects were in the stage of WIP and that same were incomplete, that flats in the said projects were already occupied, that the assessee was required to offer income in respect of such projects in the AY. under consideration, that it was aware that the Municipal authorities had issued completion certificate(CC)in respect of those properties, that it was also aware that purchasers had taken possession of the flats, that there was no reason for the assessee to claim that projects were incomplete, that WIP details showed that after 31.03.2002 the assessee incurred little expenses, that details of expenses incurred after that date did not support the claim of the assessee that wit....
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....f the penalty orders, it is found that the AO had re-calculated the WIP and had taxed it in the year under appeal, that the FAA had partly allowed the appeal in quantum proceedings, that the assessee had not disputed that the OC and the CC were issued by the municipal authorities with regard to the projects completed by it, that it was aware that the tenants had occupied the flats. In spite of these facts, it was claiming that work was going on, i.e. the projects were incomplete and that the income was not taxable in that year. Each accounting year is a different unit and income arising, accruing or received in a particular year has to be offered for taxation in that particular year unless and unless there exits some reasonable cause for de....
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.... Here we would also like to discuss the cases relied upon by the assessee. In the case of Reliance Petroproducts Pvt. Ltd.(supra)the court has held that no information, given in the return, was found to be incorrect or inaccurate, that the case of the AO was that submitting an incorrect claim in law amounted in furnishing inaccurate particulars, that the interpretation adopted by the AO was not as per law. The Hon'ble court had held that making an incorrect claim in law did not tantamount to furnishing of inaccurate particulars In the case before us, the facts are totally different-the survey proceedings, as stated earlier, brought certain facts and it was found that the assessee had not offered the income that was to be offered for the y....