s. 271(1)(c). SC. "Wrong advice given by Chartered Accountant" [In favor of Revenue]

s.271(1)(c)

Supreme Court 

Citation [2019] 103 taxmann.com 208 (SC)  

name of the case Jivanlal and Sons vs Assistant Commissioner of Income-tax

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IT: Where High Court confirmed penalty order passed by Tribunal rejecting assessee's explanation that it had claimed deduction in respect of tax paid on basis of wrong advice given by Chartered Accountant, SLP filed against decision of High Court was to be dismissed.

Section 271(1)(c), read with section 37(1), of the Income-tax Act, 1961 - Penalty - For concealment of income (Disallowance of claim, effect of) - In course of assessment, assessee claimed deduction in respect of tax paid - Assessing Officer taking a view that amount so paid was an inadmissible expenditure, disallowed same - He also initiated penalty proceedings under section 271(1)(c) for raising a false claim for deduction - Assessee raised a plea that deduction had been claimed on basis of advice given by Chartered Accountant - Assessing Officer having rejected assessee's explanation, passed penalty order under section 271(1)(c) - Tribunal confirmed said penalty order - High Court finding that there was no material in support of assessee's claim either in form of evidence of assessee or affidavit of Chartered Accountant, upheld penalty order passed by Tribunal - Whether, on facts, SLP filed against decision of High Court was to be dismissed - Held, yes [Para 1] [In favour of revenue]