The Supreme Court will decide in August a petition filed by the Income-Tax department alleging that Reliance Petroproducts had not revealed relevant information while claiming tax deductions in 2001-02.
A Bench headed by Justice Dalveeer Bhandari has posted the matter for final hearing in August. Earlier, the court had issued notice to Reliance Petroproducts.
The Income-Tax department has challenged the Gujarat High Court ruling that cleared the company of all the charges saying that the assessee had not concealed any income or furnished inaccurate particulars.
The High Court had observed that Reliance Petroproducts had duly discharged its responsibilities and thus was not a fit case for imposing penalty of around Rs 11.38 lakh.
Stating that the impugned order was wrong in holding that no substantial material had been shown to prove concealment, the department said that the High Court had erred in holding that the assessee's claim on expenditure was allowable and thus no penalty for concealment could be levied.
Reliance Petroproducts, while stressing that the department's plea must be dismissed, said that its claim for deduction of interest expenditure was bonafide and it had made full disclosures.
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Reliance said the department had failed to point out what these particulars of income were and how they had been inaccurately furnished by it.
Both the Income-Tax Appellate Tribunal and the High Court had dismissed the Revenue's appeal saying that there was no concealment of income and the books of Reliance were duly audited and even the auditors had not made any adverse remarks.