Echo Entertainment Private Limited vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Echo Entertainment Private Limited, is a company engaged in the business of entertainment and media. The assessment for the Assessment Year 2012-13 was completed under section 143(3) of the Income Tax Act, wherein the Assessing Officer made an addition of Rs.1,56,00,000/- on account of short credit of sale consideration received from the sale of copy rights and cable rights. The Assessing Officer initiated penalty proceedings under section 271(1)(c) of the Act for alleged concealment of income or furnishing inaccurate particulars of income. The assessee appealed against the addition made by the Assessing Officer, and the CIT(Appeals) granted Rs.80,00,000/- relief, sustaining an addition of Rs.76,00,000/-. Based on this sustained addition, the Assessing Officer imposed a penalty of Rs.16,03,200/- under section 271(1)(c) of the Act. The assessee filed an appeal against the penalty order, which was dismissed by the CIT(Appeals). Dissatisfied with the order, the assessee appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the penalty under section 271(1)(c) is sustainable in the light of the procedural lapse raised by the assessee.

Judgment Outcome

Decided in favour of Assessee.

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