Law:

Section:

Section 271(1)(c) of Income-tax Act, 1961 - Penalty - For concealment of income Where assessee made bogus claims of investment allowance and depreciation in respect of machinery which were not purchased, installed or commissioned during previous year, penalty was imposable on assessee, even if such claims were prepared by assessee's auditor [Assessment year 1989-90] [In favour of revenue] Kuttookaran Machine Tools v. Asstt. CIT [2009] 313 ITR 413 (Ker.) Though the return is prepared by the auditor for the assessee, it is for the assessee to ensure that wrong claims are not made by the practitioner or auditor. Thus, where the assessee had made bogus claims of investment allowance and depreciation in respect of machinery which were not purchased, installed or commissioned during the previous year, penalty was imposable on the assessee. P. Balachandran and Smt. Preetha S. Nair for the Appellant. P. K. R. Menon and George K.George for the Respondent. JUDGMENT C.N. Ramachandran Nair, J.- Heard Sri P. Balachandran, senior counsel appearing for the assessee and Sri P. K. R. Menon, senior standing counsel appearing for the Revenue. The question raised in the appeal is whether the Tribunal is justified in confirming the penalty levied on the assessee under section 271(1)(c) of the Income-tax Act for the assessment year 1989-90. On going through the Tribunal's…

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