Mumbai: Notification of Omnibus (non-specific) served by the Income Tax Department (IT) in the Manufacturer of Actress and Film Manufacturers Zinta for allegations “Income or furniture hiding from inaccurate income” has been held as invalid by loading income tax.
Tribunal (ITAT).
Presenting such notifications below section 271 (1) (c) is the first step in initiation of the penalty process.
As a result, the Mumbai bench from the court, consisting of President P P Bhat and members of Accountants Shamim Yahya, argued that RS sentence 57 lakh would also stand.
In passing the order, itat relied on the decision of the full member of the Bombay High Court and also other justice decisions.
Lately, because the faceless faceless assessment scheme, the problem of omnibus notification has maintained his head again.
Many tax practitioners indicate that facial penalties want taxpayers to provide all documents instead of only those related to disputes.
The notification is unclear, they show.
Thus, this decision will also help the taxpayer community.
The essence of litigation is the prohibition of Bank RS 1.7 Crore’s bunga taken for the production of ‘Ishque In Paris’ film, a project that began during the 2011-12 financial year and ended in 2013-14.
Zinta has claimed this interest as a business deduction during the financial year of 2013-14.
This was rejected by I-T officers who said it was related to the previous year.
Officers then initiated a penalty process for providing details of inaccurate income.
Zinta opposed this action by stating that the costs were not false, no hidden income and project details were expressed in returning I-T.
He also proposed a copy of loan from the bank.
Commissioner (appeal) gives the order that supports the actress, but the I-T department appealed with itat.
However, the tax bench frowned on the practice of issuance of omnibus penalty notification by i-t authorities.
“Notifications in this case are also notices of omnibus work because they do not turn off or delete inappropriate portions, irrelevant, do not apply.
Such generic notifications betray the non-application of the mind.
Therefore, the sentence is required according to the notification as it does not bind Legal law, “said the order.
GENERIC TAX NOTICE: ITAT QUASHES RS 57 LAKH FINE IN PREITY ZINTA
