2003 (7) TMI 13 - HC - Income Tax

Levy of penalty u/s 271(1)(c) - Whether Tribunal was correct in upholding the levy of penalty under section 271(1)(c)? Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in concluding that the assessment on the association of persons had no effect on the levy of penalty? - assessee, submits that though finally the firm was found not genuine, but he has disclosed the income, therefore, there should be no penalty under section 271(1)(c) - When the assessee has furnished the inaccurate particulars of the income, there is nothing wrong in the order of the authorities below on the given facts and specially when the minimum penalty has been imposed in the year under consideration. - we found no infirmity in the order of the Tribunal.

Summary

The High Court of Rajasthan upheld the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 on an assessee who failed to disclose accurate income from a non-genuine firm. The Tribunal confirmed the penalty, stating that the assessee's failure to provide correct income details justified the penalty imposition. The court ruled in favor of the Revenue and against the assessee, upholding the penalty.