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2014 (8) TMI 936 - AT - Income TaxPenalty u/s 271(1)(C) - Held that:- Penalty under section 271(1)(c) of the Act is leviable in cases where the assessee had either concealed its income or furnished inaccurate particulars of income. Penalty under section 271(1)(c) of the Act has been levied for furnishing of inaccurate particulars of income on two accounts. The first addition made in the case of the assessee was of understatement of value of husk sold wherein the Assessing Officer noted that the assessee had sold rice husk to various parties, out of which the rice husk sold to Indian Acrylic Ltd. was at a higher rate of ₹ 253 per quintal and to other parties was sold at ₹ 60 to ₹ 80 per quintal. The Assessing Officer made addition on account of the said difference. However, the Tribunal restricted the addition to ₹ 2,54,900 by estimating the rate of paddy husk sold in cash - assessee had furnished complete particulars before the authorities below. However, the addition in the hands of the assessee was made by estimating the value of rice husk. In such circumstances where no concrete evidence was found against the assessee and the addition being based on estimation, there is no merit in the levy of penalty under section 271(1)(c) of the Act. Accordingly, we direct the Assessing Officer to delete the penalty levied for concealment under section 271(1)(c) - Decided in favour of assessee.
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