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2015 (11) TMI 480 - ITAT JAIPURPenalty u/s 271(1)(c) - bogus credit balance shown in the books of accounts of the assessee in the name of M/s. Mayank Fabrics and treated as assessee’s income u/s 41(1)(a) - Held that:- The AO has questioned the genuineness of the liability and in absence of the requisite confirmation, has held the same to be a bogus liability. Where the liability itself has been held to be a bogus liability, where is the question of remission or cessation thereof. Thus, in the instant case, where the addition itself is doubtful under the provisions of section 41(1), the same cannot form the basis for levy of penalty. See COMMISSIONER OF INCOME TAX Versus BHOGILAL RAMJIBHAI ATARA [2014 (2) TMI 794 - GUJARAT HIGH COURT] - Penalty deleted - Decided in favour of assessee.
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