Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (3) TMI 763 - AT - Income TaxPenalty - When the returns of assessees for the respective assessment years were taken up for scrutiny, the Assessing Officer noted that there were credits of varying sums in personal accounts, which were explained as gifts received from Non-resident Indians - AO disbelieves the gifts as genuine and the amounts were considered as undisclosed income of the respective assessees - High Court held that assessees had established the identity and solvency of the donor and the donor having appeared before the department and confirmed the gifts, the reasons cited by the lower authorities to reject the explanation given by the assessees were in the realm of surmises, conjectures and suspicions - The rules of probability when applied in a penalty proceeding would, have to be applied with more rigour of preponderance, so as to tilt the balance to the side of the revenue in an accentuated manner - Accordingly penalty is deleted - Appeal is allowed
|