Tax Tribunal Upholds Penalties on Firm u/s 271(1)(c) for Unexplained Cash Credits and False Expense Claims.

ITAT upheld penalties imposed under s.271(1)(c) against appellant firm for multiple violations. Unexplained cash credits in partners' capital accounts violated Explanation-1 requirements as firm failed to provide satisfactory explanations. Penalty sustained for understated business income where appellant's claim of inadvertent omission was rejected. Additional penalties confirmed for false claims regarding FBT expenses, donations, and prior period expenses where appellant admitted inadmissibility before CIT(A). Tribunal found appellant failed to substantiate expense genuineness and maintained CIT(A)'s finding that these constituted wrong claims warranting penalties. All grounds of appeal dismissed, confirming original penalty orders. .....

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