TMI BlogThe assessee had conceded the compensation income to be included as income from other sources. However,...The assessee had conceded the compensation income to be included as income from other sources. However, upon judicial examination, the compensation was found to be compensatory and capital in nature, thus not liable to be included in the total income. Consequently, no penalty was leviable u/s 271(1)(c) on the amount allowed in favor of the assessee. Regarding the initiation of penalty u/s 271(1)(c) for income from capital gains and other sources with intent to avoid taxes, the Calcutta High Court held that when the assessing officer recorded concealed/undisclosed income in the assessment order and initiated penalty proceedings, the consequent notice u/s 274 complied with natural justice principles, dismissing the related ground of appeal. O..... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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