M/s Shree Swaminarayan Enterprises vs. ITO Ward 2(4)

Parties Involved

Facts Summary

The assessee, a partnership firm engaged in the business as builders and developers, filed an income return for the Assessment Year 2011-12 disclosing a total income of Rs.78,378/-. The return was processed under Section 143(1) of the Act and the assessment was completed under Section 143(3) of the Act on 25.03.2015 assessing the total income of Rs.54,09,300/-. The Assessing Officer found that the assessee violated the conditions of provisions of Section 80IB(10)(e)&(f) of the Act and issued a notice under Section 148 of the Act. The assessee filed a revised return of income disclosing a total income of Rs.30,03,517/- after claiming deduction under Section 80IB(10) of the Act. The Assessing Officer denied the deduction and assessed the total income of Rs.80,94,610/-. The Assessing Officer initiated penalty proceedings under Section 271(1)(c) of the Act and levied a penalty of Rs.9,28,086/-. The assessee appealed to the Commissioner of Income Tax (Appeals) and then to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the penalty levied under Section 271(1)(c) of the Income Tax Act is justified?
• 2. Whether the penalty order passed by the Assessing Officer is time barred?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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