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| The Tax Publishers2020 TaxPub(DT) 4130 (Guj-HC) INCOME TAX ACT, 1961
Section 271(1)(c)
Where CIT(A) restricted the penalty to the extent of the tax on income determined at the income computed at 8% of the turnover, further, Tribunal held that once income was reduced, penalty would also get reduced proportionately and thereby the Tribunal restricted the penalty.
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Penalty under section 271(1)(c) - Unexplained credits - CIT(A) restricted income of assessee at 8% -
A huge amount of cash credits was found in the bank account of the assessee. In such circumstances, notice under section 148 was issued. However, assessee neither filed any return of income nor complied with the notice. In such circumstances, a Show Cause Notice came to be issued, whereby assessee was asked to explain the source of cash deposits in his current bank account. Ultimately, AO made addition under sections 68 and 69A for huge cash deposits in saving bank accounts. Subsequently, penalty proceedings came to be initiated on the ground of concealment of income. CIT(A) restricted the penalty to the extent of the tax on income determined at the income computed at 8% of turnover. Held: Appellate Tribunal held that assessee had concealed the particulars of income. Tribunal held that once the income is reduced, the penalty would also get reduced proportionately and the Tribunal restricted the penalty. Therefore, appeal failed and accordingly dismissed.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2003-04
IN THE GUJARAT HIGH COURT
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