Virtual Soft Systems Ltd. v. CIT

289 ITR 83Supreme Court of India2007#1240 most cited

What is Virtual Soft Systems Ltd. v. CIT authority for?

Section 271 of the Income-tax Act, being a penal provision, must be construed strictly and narrowly. The case also initially held that a clarificatory amendment was not retrospectively applicable, a view later reversed by a larger bench.

91

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2007 to 2025.

Also referred to as

Virtual Soft Systems Ltd v CIT · Section 271 · penal provision · strict interpretation · mens rea · concealment of income penalty · retrospective amendment · Gold Coin Health Food Pvt Ltd · 289 ITR 83 · 159 Taxmann 155

Also reported as

159 Taxmann 155

Sections most often in play

Section 115BBESection 132Section 132ASection 133ASection 135ASection 139Section 140A(4)Section 144C(13)
Read the full judgment

Issues it is cited on

employees contribution to pfsection 2(24)(x)section 2(24)section 36(1)(va)concealment of incomesection 43bsection 36(1)section 43section 36section 271(1)section 271section 139(1)

Judgments citing Virtual Soft Systems Ltd. v. CIT

J.R. Sharma Overseas Ltd vs. ITO Ward 4 (1)

In the result, appeal of the assessee is allowed

ITA 2123/DEL/2007[2001-2002]Status: DisposedITAT Delhi05 Aug 2016AY 2001-2002

Bench: Shri Chandra Mohan Garg & Shri L.P. Sahu

Section 154Section 271(1)(c)

…contentions the Ld. DR, at the outset, pointed out that the Tribunal ITAT, “H” Bench allowed appeal of the assessee and penalty was deleted by following the preposition laid down by Hon'ble Supreme Court in the case of Virtual Soft Systems Pvt. Ltd vs. CIT 289 ITR 83 (S.C) and subsequently on the Miscellaneous application filed by the Revenue i.e M.A No.528/Del/2008 the Tribunal related the order by following the ratio of the subsequent decision of Hon'ble Supreme Court in the case of CIT Vs. Gold Coin Foods Pvt. Ltd 172 Taxman 38 (S.) wherein it was held that the operation of Explanation 4 to Section 271(1…

Fiduciary Euromax Global Markets Ltd, Mumbai vs. DCIT 8(1), Mumbai

In the result, this appeal of the assessee is allowed

ITA 955/MUM/2014[2010-11]Status: DisposedITAT Mumbai29 Jun 2016AY 2010-11

Bench: Shri G.S. Pannu & Shri Sanjay Garg

For Appellant: Shri V.C. Shah, A.RFor Respondent: Shri S. Senthil Kumaran, D.R
Section 14ASection 73

…2014 9 M/s. Fiduciary Euromax Global Markets Ltd. 5.6.5 The Hon'ble Apex Court in the case of CIT vs. Gold Coin Health Foods Pvt. Ltd. (304 ITR 308) while reversing the decision of the Division Bench of the Apex Court in the case of Virtual Soft Ltd. vs. CIT (289 ITR 83) observed that "A combined reading of the recommendations of the Wanchoo Committee and Circular NO. 204 dated July 24, 1976, makes the position clear that Explanation 4(a) to section 271(1)(c)(iii) intended to levy penalty not only in the case where after addition of concealed income, a loss returned after assessment becomes positive income, but a…

Fiduciary Euromax Global Markets Ltd, Mumbai vs. DCIT 8(1), Mumbai

In the result, this appeal of the assessee is allowed

ITA 1349/MUM/2012[2009-10]Status: DisposedITAT Mumbai29 Jun 2016AY 2009-10

Bench: Shri G.S. Pannu & Shri Sanjay Garg

For Appellant: Shri V.C. Shah, A.RFor Respondent: Shri S. Senthil Kumaran, D.R
Section 14ASection 73

…2014 9 M/s. Fiduciary Euromax Global Markets Ltd. 5.6.5 The Hon'ble Apex Court in the case of CIT vs. Gold Coin Health Foods Pvt. Ltd. (304 ITR 308) while reversing the decision of the Division Bench of the Apex Court in the case of Virtual Soft Ltd. vs. CIT (289 ITR 83) observed that "A combined reading of the recommendations of the Wanchoo Committee and Circular NO. 204 dated July 24, 1976, makes the position clear that Explanation 4(a) to section 271(1)(c)(iii) intended to levy penalty not only in the case where after addition of concealed income, a loss returned after assessment becomes positive income, but a…

Fiduciary Shares & Stocks P.Ltd, Mumbai vs. ACIT Cir 4(2), Mumbai

In the result, the assessee’s appeal for A

ITA 321/MUM/2013[2009-10]Status: DisposedITAT Mumbai13 May 2016AY 2009-10

Bench: Shri Jason P. Boaz & Shri Sandeep Gosainfiduciary Shares & Stock P. Ltd. Acit, Circle 4(2) Unit No. T7B, 5Th Floor, Phoenix Àayakar Bhavan, M.K. Road House, Block No. 2, Phoenix Mills Vs. Mumbai 400020 Compound, 462, Senapati Bapat Marg, Mumbai 400013 Pan - Aaacf9759N Appellant Respondent

For Appellant: Shri B.V. JhaveriFor Respondent: Shri Sumit Kumar
Section 143(1)Section 143(3)Section 14ASection 73

…IN THE INCOME TAX APPELLATE TRIBUNAL "F" Bench, Mumbai Before Shri Jason P. Boaz, Accountant Member and Shri Sandeep Gosain, Judicial Member Fiduciary Shares & Stock P. Ltd. ACIT, Circle 4(2) Unit No. T7B, 5th Floor, Phoenix Àayakar Bhavan, M.K. Road House, Block No. 2, Phoenix Mills Vs. Mumbai 400020 Compound, 462, Senapati Bapat Marg, Mumbai 400013 PAN - AAACF9759N Appellant Respondent Appellant by: Shri B.V. Jhaveri Respondent by: Shri Sumit Kumar Date of Hearing: 12.04.2016 Date of Pronouncement: 13.05.2016 O R D E R Per Jason P. Boaz, A.M. This appeal by the assessee is directed against the order of th…

Shirpur Gold Refinery Ltd, Mumbai vs. ACIT 9(3), Mumbai

In the result, appeal of the assessee is allowed

ITA 2827/MUM/2013[2001-02]Status: DisposedITAT Mumbai16 Dec 2015AY 2001-02
For Appellant: Shri Dalpat Shah & B.S.SharmaFor Respondent: Shri Javed Akhtar
Section 143(3)Section 271(1)(c)

…lanation 4 to Section 271(1)(c), no penalty can be levied u/s.271(1)(c) in the present case for A.Y.2001-02, as the amendment is effective from 01.04.2003 i.e. from A.Y.2003-04 and as held by the Hon’ble Supreme Court in the case of Virtual Soft Systems Ltd., 289 ITR 83. Ld. AR also placed on record order of the Tribunal in assessee’s own case for the assesmsnet year 2007-08, wherein similar disallowance was deleted and the order of the Tribunal was confirmed by the Hon’ble Bombay High Court in ITA No.2607/2011, dated 13-3-2013. 4. We have considered rival contentions and found from the record that during the yea…

ACIT, Circle-10(1), New Delhi vs. T.D.T. Copper Ltd., New Delhi

In the result, the appeal is dismissed

ITA 2411/DEL/2006[2000-01]Status: DisposedITAT Delhi23 Sept 2015AY 2000-01

Bench: Shri Inturi Rama Rao & Smt. Beena A. Pillaiassessment Year: 2000-01 Acit, Circle-16(1), Vs. M/S T.D.T. Copper Ltd, New Delhi 7-Jagriti Enclave, Vikas Marg, Delhi (Pan:Aaact1028N) (Appellant) (Respondent) Appellant By : Sh. K.K. Jaiswal, Dr Respondent By : S/Sh. R.S. Singhvi, Ca & Satyajit, Ca Date Of Hearing: 09.09.2015 Date Of Pronouncement: 23.09.2015 Order Per Inturi Rama Rao, A.M.: This Appeal Arise Out Of The Order Of Hon’Ble High Court Of Delhi In Ita No. 1242 Of 2008, Dated 14Th December, 2009 Whereby The Earlier Order Of This Tribunal Dated 17Th January, 2008 Was Set Aside. The Revenue Filed The Present Appeal Against The Order Of Cit(A)-Xix, New Delhi, Dated 21St April, 2006 For The Assessment Year 2000-01. 2. The Brief Facts Of The Case Are That The Assessee Company Filed The Return Of Income For The Assessment Year 2000-01 On 29.11.2000, Disclosing A Loss Of Rs. 11,97,57,110/-. Subsequently, The Return Of Income Was Selected For Scrutiny Assessment & The Assessment Came To Be Completed Under Section 143(3) Vide

For Appellant: Sh. K.K. Jaiswal, DRFor Respondent: S/sh. R.S. Singhvi, CA & Satyajit, CA
Section 143(3)Section 27(1)(c)Section 271(1)(c)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘A’: NEW DELHI BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SMT. BEENA A. PILLAI, JUDICIAL MEMBER Assessment Year: 2000-01 ACIT, Circle-16(1), Vs. M/s T.D.T. Copper Ltd, New Delhi 7-Jagriti Enclave, Vikas Marg, Delhi (PAN:AAACT1028N) (Appellant) (Respondent) Appellant by : Sh. K.K. Jaiswal, DR Respondent by : S/sh. R.S. Singhvi, CA & Satyajit, CA Date of hearing: 09.09.2015 Date of pronouncement: 23.09.2015 ORDER PER INTURI RAMA RAO, A.M.: This appeal arise out of the order of Hon’ble High Court of Delhi in ITA No. 1242 of 2008, dated 14th December, 2009…

Commissioenr of Income Tax vs. Dr. T. Ravi Kumar

ITTA/399/2011HC Telangana24 Jul 2013
Section 143(3)Section 271(1)(c)

…116,30,34,284/- after appeal effect . In another words the assessed figure at all stages in the case of the appellant company for A. Y. 1995-96 has been a loss and relying on the decision of Supreme Court in the case of Virtual Soft Systems ltd. vs. CIT 289 ITR 83 (SC) which is relevant to A. Y. 1996-97, the Apex Court has held that prior to the amendment made to section 271(1) (c) by the Finance Act 2002, which came into operation on 01.04.2003, no penalty for concealment could be imposed unless some tax was payable by the assessee, then the question of imposition of penalty for co…

Jt.Commr.of Income Tax, Surat vs. Saheli Leasing & Industries Ltd

Appeals stand allowed as mentioned hereinabove but with

C.A. No.-004278-004278 - 2010Supreme Court07 May 2010
Section 260

…avour of the Revenue by a judgment of Bench of three learned Judges of this Court reported in (2008) 304 ITR 308 (SC) titled CIT Vs. Gold Coin Health (P) Ltd. 20. In Gold Coin (supra) an earlier judgment of this Court, reported in (2007) 289 ITR 83 SC titled Virtual Soft Systems Ltd. Vs. CIT, pronounced by two learned Judges has been over-ruled. 21. It is pertinent to point out here that in Gold Coin (supra), what was being challenged by the Revenue, was the order passed by same Bench of the High Court of Gujarat at Ahmedabad, which finds place at page 309, wherein before…

Commissioner of Income Tax Delhi I vs. Becton Dickinson India Ltd

The appeal is dismissed

ITA - 114 / 2009HC Delhi12 Mar 2009
Section 143(3)Section 260Section 271(1)(c)

…by it under Section 271(1)(c) of the Act both on the point of law, as well as, on merits. On the point of law, the Tribunal has followed the judgment of the Supreme Court in the case of Virtual Soft Systems Ltd vs Commissioner of Income Tax: (2007) 289 ITR 83. It is contended by the learned counsel for the Revenue, Ms Prem Lata Bansal that the said judgment of the Supreme Court has been reversed by a larger bench judgment of the Supreme Court in the case of Commissioner of Income Tax vs Gold Coin Health Food Pvt Ltd: (2008) 304 ITR 308. On merits the learned counsel submits that the Tribuna…

Commissioner of Income Tax vs. M/S. Moser Baer India Limited

The appeals are dismissed

ITA/1458/2006HC Delhi17 Sept 2007
Section 10BSection 260Section 271(1)(c)

…hat the satisfaction of the Assessing Officer could be discerned from a plain reading of the assessment order. In response to a query whether in view of the decision of the Supreme Court in Virtual Soft Systems Limited v. Commissioner of Income Tax [2007] 289 ITR 83, absence of a positive income penalty could be levied. Ms. Mathur submitted that in the instant case the income for the assessment year in question, prior to the setting off the brought forward losses of the earlier years, was a positive income and therefore, penalty could be levied. Further, she sought to distinguish the judgment in Vir…

Commissioner of Income Tax vs. M/S. Bharat Hotels Limited

Appeals are dismissed

ITA/1074/2006HC Delhi13 Sept 2007
Section 260Section 271Section 271(1)(c)

…rs has been assessed as Nil after adjusting unabsorbed depreciation of certain previous assessment years. He accordingly submits that by virtue of the decision of the Supreme Court in Virtual Soft Systems Limited v. Commissioner of Income Tax [2007] 289 ITR 83 no penalty can be levied. 11. No substantial question of law arises in these appeals. These appeals are dismissed. MADAN B. LOKUR, J S. MURALIDHAR, J SEPTEMBER 14, 2007 rk 2007:DHC:1105-DB…