TaxTMI 
TaxTMI 
2022 (3) TMI 1075
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.... as the "ld. Commissioner"} for the assessment years 2004-05 and 2005-06, whereby the Ld. Commissioner upheld the levy of penalty u/s 271(1)(c) of the Income Tax Act 1961 (in short "the Act‟) by the Assessing Officer. 2. As the issue involved in the instant appeals is exactly similar, and therefore for the sake of brevity, we are taking into consideration the facts of ITA No. 4968/Del/2013 (AY 2004- 05)for adjudication and result of same shall apply mutatis mutandis to ITA No. 4969/Del/2013 (AY 2005-06) as well . 3. In this case the Assessee had filed its return of income by declaring income of Rs. 11,72,87,910/- on dated 30.03.2006, which was processed and vide assessment order dated 22.12.2006, income declared by the Assessee ....
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....l Taxation, New Delhi)u/s 197 of the Act to the Assessee, contents of the same are reproduced below: "The appellant has said that TDS rate should be determined in accordance with provisions of section 44BBB of the Act. As such the net profits for this financial year are taken at 10% u/s 44BBB of the Act. You are hereby authorized to make payment of the above nature to Lahmeyer International for the above mentioned amount after deducting tax at 4.1% of the gross amount payable to the payee." 7.2 The ld. Counsel Sh. SalilKapoorfurther submitted that the Assessee in good faith and belief, had offered its income for tax on presumptive basis u/s 44BBB of the Act, whereas the AO taxed the income of the Assessee @20% and there....
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....utside the purview of supervisory activities . Accordingly, the Assessee was under genuine belief that no supervisory/ installation of PE has been constituted as per Article 5 of the Tax Treaty by the Assessee, under the above contracts with MPCPL, VIWSCL and APTC. It was also claimed by the Assessee that in the absence of PE in India and considering the nature of services rendered by the Assessee i.e. technological/consultancy services, the Assessee has rightfully offered the revenues earned from the said contracts to tax @10% as FTS as per Article 12 of the India-Germany Tax Treaty. 9.1 The Assessee had also claimed that the intention of the legislature to impose penalty is to cover cases where an Assessee deliberately attempts to cont....
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....al. 9.3 The Hon‟ble Apex Court in the case of Reliance Petro Products Pvt. Ltd 322 ITR 158 while dealing with the penalty imposed for claiming expenditure which was declined to be allowed u/s 14A of the Act, held"that mere making of a claim, which is not sustainable in law, would not, ipso facto, amount to furnishing of inaccurate particulars regarding the income of the Assessee and would, therefore, not automatically result in a penalty order against the Assessee." 9.4 Even the Hon‟ble Tribunal in the case of ACIT, Circle-(1) Vs. M/s Nortel Networks Ltd (supra) dealt with identical issue wherein there was difference between the computation of tax by the Assessee and the Assessing Officer, and deleted the penalty imposed i....