INCOME TAX ACT 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars of income - Addition under section 68 -

AO made addition as unexplained cash credit under section 68 and on the basis of such addition, initiated penalty proceedings under section 271(1)(c) alleging concealment of income and furnishing inaccurate particulars of income. Held: Neither in the quantum proceedings nor in the penalty proceeding, assessee had not furnished any explanation or supporting evidence either to contest the addition made under section 68 on merits or to prove the fact that there was neither any concealment of income nor furnishing particulars of inaccurate income. Facts on record clearly reveal the casual and non-cooperative attitude of the assessee towards the tax proceedings. Thus, when the assessee had not brought on record any evidence to prove the genuineness of the share premium and has also miserably failed to establish on record that there was neither any concealment or furnishing of inaccurate particulars of income, imposition of penalty under section 271(1)(c) was justified.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10

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