O is a company and subsidiary of PSU It is implementing a project and recently started production. It claimed the amortisation of lease premium over he lease period on time basis amounting to about 20 crores pertaining to current AY 2017-18. The AO disallowed the claim and the loss is reduced in assessment. Penalty proceedings are initiated for mis-statement\/ understatement of income. The company is in appeal before CIT(A).
\nNow the revenue authorities are pressurising the co to make a declaration under the scheme and pay tax and penalty as provided under the scheme. The appeal is pending before the CIT(A).
\nShould the co opt for the scheme? I strongly feel that the company has good chance of success in appeal. Your considered opinion is sought.<\/p>\n","protected":false},"excerpt":{"rendered":"
O is a company and subsidiary of PSU It is implementing a project and recently started production. It claimed the amortisation of lease premium over he lease period on time basis amounting to about 20 crores pertaining to current AY 2017-18. The AO disallowed the claim and the loss is reduced in assessment. Penalty proceedings are initiated for mis-statement\/ understatement of income. The company is in appeal before CIT(A). Now the revenue authorities are pressurising the co to make a declaration under the scheme and pay tax and penalty as provided under the scheme. The appeal is pending before the CIT(A). Should the co opt for the scheme? I strongly feel that the company has good chance of success in appeal. Your considered opinion is sought.<\/p>\n