INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Disallowance of statutory deduction under section 24(a) -

AO levied penalty under section 271(1)(c) on account of withdrawal of 30% of standard deduction under section 24. Held: Rental income was shown by assessee, tax deduction at source was allowed to assessee and remittance of the sum to charitable-trust was also demonstrated, therefore, disallowance of statutory deduction under section 24(a) was simple disallowance and did not involve any element of concealment of income or furnishing of inaccurate particulars. Further, penalty notice did not show any of the twin charges, on which penalty was levied, as none of them was struck off and, therefore, no penalty could be sustained.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2006-07

INCOME TAX ACT, 1961

Section 271(1)(c)

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