Opinion of CA is no shelter against tax penalty

Placing reliance on the opinion of a chartered accountant will not absolve the taxpayer from penal consequence for apparent incorrect claim. Thus decided the Delhi Bench of appellate tribunal in the Chadha sugars (P) Ltd case on December 23, 2011. The concealment penalty was with regard to Rs 7.81 lakh claimed as expenditure for fee paid to the Registrar of Companies for enhancing the authorised capital of the company. The tax officer held that in spite of direct apex court decisions, the taxpayer had persisted with the claim, taking shelter under the opinion of a chartered accountant.

Source: The Hindu Business Line