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| The Tax Publishers2019 TaxPub(DT) 7540 (Pune-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where certain disallowance/addition could legally be made in assessment proceedings on the preponderance of probabilities but no penalty could be imposed under section 271(1)(c) on the preponderance of probabilities and there was nothing on record to demonstrate that assessee had concealed the particulars of income, thus no penalty could be levied.
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Penalty under section 271(1)(c) - Concealment of income - Disallowance/addition made in assessment proceedings but concealment not proved -
AO made addition on account of long term capital gains and further levied penalty under section 271(1)(c) for concealing the income. CIT(A) upheld the penalty levied by the assessing officer and dismissed the appeal of assessee. Held: It is well settled that the parameters of judging the justification for addition made in the assessment case of assessee was different from the penalty imposed on account of concealment of income or filing inaccurate particulars of income and that certain disallowance/addition could legally be made in assessment proceedings on the preponderance of probabilities but no penalty could be imposed under section 271(1)(c) on the preponderance of probabilities. There was nothing on record to demonstrate that assessee had concealed the particulars of income. Thus, no penalty could be levied.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 271(1)(c)
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