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| The Tax Publishers2019 TaxPub(DT) 1540 (Pune-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Penalty under section 271(1)(c) on addition of Rs. 5 lakhs sustained by CIT(A) was unsustainable in law as relevant penalty proceedings should have been initiated by CIT(A) only as addition of Rs. 5 lakhs was his creation, therefore, penalty levied by AO was required to be quashed.
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Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Ledvy of penalty by AO on addition sustained by CIT(A) -
AO made addition of Rs. 2 lakhs on account of loan taken by assessee from 10 persons and of Rs. 8 lakhs on account of infalted purchases. CIT(A) deleted the addition on account of loan taken however, restricted addition on account of inflated purchases to Rs. 5 lakhs AO levied penalty under section 271(1)(c) on addition of Rs. 5 lakhs sustained by CIT(A). Held: Penalty on addition of Rs. 5 lakhs sustained by CIT(A) was unsustainable in law as relevant penalty proceedings should have been initiated by CIT(A) only as addition of Rs. 5 lakhs was his creation. Therefore, penalty levied by AO was required to be quashed.
Relied:Vikrant Happy Homes (P) ltd. ITA No. 345/PN/2015.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2001-02
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