Section 271(1)(c) : Concealment penalty levied

Concealment penalty levied as loss on sale of fixed assets was claimed in P&L account and in IT return

[2015] 57 taxmann.com 389 (Delhi)

HIGH COURT OF DELHI

Commissioner of Income-tax

v.

NG Technologies Ltd

Section 271(1)(c), read with section 28(i), of the Income-tax Act, 1961 - Penalty - For concealment of income (Disallowance of claim, effect) - Assessment year 2006-07 - Whether where assessee claimed loss on sale of fixed assets in profit and loss account which was a capital loss, same was contrary to basic principles of accountancy - Held, yes - Whether since assessee did not file revised return for same voluntarily but had filed revised return after Assessing Officer confronted assessee and they were asked to explain claim of loss in question in profit and loss account penalty under section 271(1)(c) was sustainable - Held, yes [Paras 17 and 20] [In favour of revenue]