Stocks

24 May 2015

Immunity against penalty

R. W. Promotions P. Ltd. vs. ITAT (Bombay High Court) 

Immunity against penalty under Explanation 5 is available even if return is not filed provided a statement is made during the search, explaining the manner of deriving the income and due tax & interest thereon is paid

In order to get the benefit of immunity under clause (2) of explanation 5 to section 271(1)(c) of the Income-tax Act, it is not necessary to file the return before the due date provided that the assessee had made a statement, during the search and explained the manner in which the surrendered amount was derived, and paid tax as well as interest on the surrendered amount.



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