PRO COMMISSIONER OF INCOME TAX-6 v. NADISH REAL ESTATES PVT. LTD
[Citation -2015-LL-0924-51]
Citation | 2015-LL-0924-51 |
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Appellant Name | PRO COMMISSIONER OF INCOME TAX-6 |
Respondent Name | NADISH REAL ESTATES PVT. LTD. |
Court | HIGH COURT OF DELHI AT NEW DELHI |
Relevant Act | Income-tax |
Date of Order | 24/09/2015 |
Assessment Year | 2006-07 |
Judgment | View Judgment |
Keyword Tags | loss return • business expenditure • commencement of business • purchase of land • finding of fact • penalty for concealment of income • incorrect claim • mala-fide claim • substantial question of law |
Bot Summary: | The loss had occurred due to certain expenses which had been made by the assessee which the assessee had claimed as business expenditure. The Assessing Officer disallowed the entire expenditure on account of the fact that the assessee had not commenced its business. The finding of fact against the assessee is that the assessee had not commenced its business and the expenditure claimed by it was not allowable. The Tribunal came to the conclusion that the claim made by the assessee was on a point of law which was ultimately not found to be correct. According to the Tribunal the mere fact that the claim was incorrect would not make the assessee liable for penalty under Section 271(1)(c). As long as the assessee s claim was bona-fide, the liability of penalty would not arise. The Tribunal examined the nature of the claim made by the assessee in the following manner:- In the case of the assessee, we find that the returned income of the assessee was loss of Rs 38,86,482/- and, after disallowance of expenses, income assessed is nil. |