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2016 (6) TMI 252 - ITAT AHMEDABADPenalty u/s. 271(1)(c) - discount from IOC that was not accounted by the assessee - Held that:- For levy of penalty apart from falsity of the explanation given by the assessee, the Department must have before it cogent material or evidence from which it could be inferred that the assessee has concisely concealed the particulars of income or had deliberately furnished inaccurate particulars of income. It is well settled that the parameters of judging the justification for addition made in the assessment case of the asssessee is different from the penalty imposed on account of concealment of income or filing inaccurate particulars of income and that certain disallowance/addition could legally be made in the assessment proceedings on the preponderance of probabilities but no penalty could be imposed u/s. 271(1)(c) of the Act on the preponderance of probabilities and Revenue has to prove that the claim of expenses by the assessee was not genuine or was inflated or the non-inclusion of income was to reduce its tax liability. Considering the aforesaid facts and peculiar facts of the case, and considering the fact that the amount has been offered to tax in subsequent assessment years and the assessee being a Government Corporation, we are of the view that in the present case no case for levy of penalty u/s. 271(1)(c) of the Act has been made out. We thus direct the deletion of penalty u/s. 271(1)(c) of the Act - Decided in favour of assessee.
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