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2011 (1) TMI 627 - HC - Income TaxPenalty levied u/s 271(1)(c) - the Assessing Officer has relied on the submissions of the parties namely M/s. Abhi Dyes and M/s. Pooja Dye Chem in the case of Vardhaman Fabrics Pvt. Ltd., that they have given bogus bills and have not actually sold any goods. The Assessing Officer, after investigation, has not brought any material on record to show that these parties have not sold any goods to the assessee and have given bogus bills which has been shown by the assessee in its books of accounts. Without bringing any such material, the Assessing Officer could not have come to a definite conclusion that the assessee has filed inaccurate particulars of its income or has concealed its income in order to avoid payment of tax. The Assessing Officer has merely accepted the surrender made by the assessee. This is good as far as the assessment is concerned but in order to levy penalty, the Assessing Officer has to conclusively establish that the assessee has concealed its income or has filed inaccurate particulars of income. In the absence of any evidence to this effect, in our considered opinion, the Assessing Officer was not justified in levying penalty of Rs.5,82,287/-. Hence, we set aside the orders of the lower authorities and delete the penalty of Rs.5,82,287/-.
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