The Tax Publishers2020 TaxPub(DT) 4283 (Mum-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Imposition of Penalty under section 271(1)(c) on the basis of ad hoc and estimated disallowance, without bringing any clinching material suggesting concealment of income or furnishing of inaccurate particulars of income, was not justified.

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Leviability as regards disallowance made on estimation basis -

AO levied penalty under section 271(1)(c) as regards disallowance of bogus purchases made on estimation basis. Held: Imposition of penalty under section 271(1)(c) on the basis of ad hoc and estimated disallowance, without bringing any clinching material suggesting concealment of income or furnishing of inaccurate particulars of income, was not justified.

Relied:Asstt. CIT v. Vision Research Management ('P) Ltd. ITAT Lucknow (2015) 63 Taxmann.com 8 (Luck-Trib) : 2015 TaxPub(DT) 3243 (Luck-Trib). CIT v. Norton Electronics Systems (P) Ltd. (2014) 41 Taxmann.com 280 (All-HC) and Prem Chand v. Asstt CIT (2014) 52 Taxmann.com 95 (Chd-Trib) : 2014 TaxPub(DT) 4063 (Chd-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10 & 2010-11

INCOME TAX ACT, 1961

Rule 34(5)

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