Tuesday, July 1, 2014

[aaykarbhavan] quantum addition is not sufficient for levying of penalty u/s. 271(1)(c)




ITAT AHMEDABAD - Income Tax
Deletion of penalty u/s 271(1)(c) of the Act on account of low GP – Failure to produce books of accounts and other documentary evidence – Unexplained investment u/s 131 of the Act – Held that:- In the absence of books of accounts, the Revenue was fully justified in making additions but the quantum addition is not sufficient for levying of penalty u/s. 271(1)(c) of the Act for the reason that the parameters of judging the justification for addition made in assessment case of Assessee is different from the penalty imposed on account of concealment of income – Relying upon Navjivan Oil Mills. Versus Commissioner of Income Tax GUJARAT High Court] - when the addition was made on estimate basis, penalty u/s 271(l)(c) was not leviable – the penalty on the addition is set aside.
 
Regards
Prarthana Jalan


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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>


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