Penalty under section 271 (1)(c)
This query is : Resolved
31 December 2013
Query is on Penalty under Section 271 (1)(c)
In the search initiated in the Business Premises of assesse and his residence. Two assessee where selected for the Block. Company and the individual who is also director & shareholder of the company.
During search some additional amount disclosed by the Assessee Company and accordingly expenditure also booked in the form of remuneration to the director. Assessing officer imposed penalty on the additional amount disclosed by the company without giving effect of additional expenditure claimed by the company and also imposed penalty in case of director for additional income i.e. remuneration.
My questions:
1 whether assessee company can claim additional expenditure
2 AO penalised the additional income in the hands of company and also expenditure which is the income of the director also penalised whether it is justified?
Example of the case
In case of Company
Particular Original Return Revised Return Penalty on
Sales 1000 2000 1000
Less: Exp(Remuneration) 500 600
Net taxable 500 1400
In case of Director
Remuneration 500 600 100
Note: Penalty imposed by AO on sales instead of the net taxable income
Is there any judicial pronouncement
In the search initiated in the Business Premises of assesse and his residence. Two assessee where selected for the Block. Company and the individual who is also director & shareholder of the company.
During search some additional amount disclosed by the Assessee Company and accordingly expenditure also booked in the form of remuneration to the director. Assessing officer imposed penalty on the additional amount disclosed by the company without giving effect of additional expenditure claimed by the company and also imposed penalty in case of director for additional income i.e. remuneration.
My questions:
1 whether assessee company can claim additional expenditure
2 AO penalised the additional income in the hands of company and also expenditure which is the income of the director also penalised whether it is justified?
Example of the case
In case of Company
Particular Original Return Revised Return Penalty on
Sales 1000 2000 1000
Less: Exp(Remuneration) 500 600
Net taxable 500 1400
In case of Director
Remuneration 500 600 100
Note: Penalty imposed by AO on sales instead of the net taxable income
Is there any judicial pronouncement
02 January 2014
The additional expenditure may be claimed by the company and shall be allowed by the AO, but the penalty shall be imposed on the same on director.
02 January 2014
For detailed explaination mail me the details on cachinay@gmail.com
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