TaxTMI 
TaxTMI 
2018 (9) TMI 1322
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....etitioner had filed the return of income declaring total income of Rs. 17,18,090/and claimed refund of Rs. 6,68,460/. During the course of scrutiny assessment, the Assessing Officer objected to the assessee's claim of deduction for the provisions of income tax of a sum of Rs. 8.70 lakhs. The representative of the assessee accepted it as an error and agreed to such claim being disallowed. The Assessing Officer thereupon passed the order of assessment on 24.12.2010. He also instituted penalty proceedings. He passed an order of penalty under section 271(1)(c) of the Income Tax Act, 1961 ('the Act' for short) on 15.03.2013, in which, he imposed penalty at the rate of 100% of the tax sought to be evaded. He thus, levied penalty of Rs....
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....ount sought to be evaded as per para-12.2 of compounding guidelines. Rs.8,70,000/- (ii) Liability of Directors u/s 278B: 10% of compounding fees (Shri Trupti S Mistry who digitally signed the return of income) Rs. 87,000/- (iii) Prosecution establishment expenses @ 10% subject to minimum fees of Rs. 25,000/- Rs. 87,000/- (iv) Litigation expenses (as per rates prescribed by the Govt) Rs. 5,000/- Total: Rs. 10,49,000/- 4. The petitioner thereupon applied for rectification of this computation under a letter dated 23.03.2018. He referred to the provisions of section 276C of the Act and contended that the compounding charges would be 100% of the amount of tax sought to ....
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....ears and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and with fine. 8. Section 279 of the Act pertains to the prosecution to be at instance of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. Subsection (1) of section 279 provides that a person shall not be proceeded against for offenses under various sections including section 276C of the Act except with the previous sanction of the Principal Commissioner or Commissioner or Commissioner (Appeals) or the appropriate authority. Subsection (2) of section 279 provides that any offense under this chapter may, either before or after....
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....argeable under the Act. This could be without prejudice to any penalty that may be imposable on him under any provisions of the Act. Under such circumstances, as per the sections stood at the relevant time, the person concerned would be punishable; (i) In case where the amount sought to be evaded exceeds Rs. 250,000/, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine and; (ii) In any other case with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and with fine. 12. This provision thus while prescribing punishment for willful attempt to evade tax, penalty or interest chargeable, provi....