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2014 (1) TMI 1626 - AT - Income TaxPenalty u/s 271(1)(c) - Addition u/s 68 - Held that:- Addition made by the Assessing Officer for which penalty is imposed is the addition on account of two unsecured loans and the addition was made under section 68 of the Act. We also find that both the persons have given confirmation, which is available in the paper book. It is true that the unsecured loan, claimed to have been received by the assessee, was not accepted by the Revenue, but present proceedings are penalty proceedings and therefore, we have to see as to whether there is possibility of concealment or furnishing of inaccurate particulars of income or not. - assessee could not prove ingredients of section 68 in respect of these two loans but the explanation of the assessee could not be disproved also by the Revenue. Under these facts, we are of the considered opinion that although the addition is finalised but penalty is not justified because the assessee has submitted explanation regarding these cash credits and the same could not be established to be not bona fide and therefore, in our considered opinion, the penalty is not justified - Decided against Assessee.
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