Penalty cannot be imposed under section 271 on debatable issue

Last updated: 12 November 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The relevant facts of the case giving rise to these appeals are as follows. The assessee is a private limited company which filed its return of income for A.Y. 1981-82, 82-83 and 83-84 on 30.6.1981, 30.6.1982 and 10.8.1983 respectively. On the basis of the said returns, assessments were originally completed by the Assessing Officer u/s. 143(3). The assessments so completed, however, were subsequently reopened for all these three years on the basis of information received by him that the commission claimed to have been paid by the assessee company to three companies, viz., M/s Excavators India Pvt. Ltd., M/s Triveni International Products Pvt. Ltd. and M/s Bahari & Company Pvt. Ltd. in the said years was bogus an the amounts paid to the said companies by cheques towards commission had been actually received back by the assessee company in cash.

Citation :
ITA Nos. 567, 568 & 569/Del/2006 A.Y.rs. 1981-82, 1982-83 & 1983-84 Dy. Commissioner of Income Tax, Cir. 15(1), Room No. 412, CR Building, I.P. Estate, New Delhi (Appellants) Vs. M/s Roger Enterprises (P) Ltd.,Flat No. L, 1st floor, C-3, Kailash Colony, New Delhi (PAN: AAA CR 0234J) (Respondents)