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2011 (3) TMI 579 - AT - Income TaxPenalty u/s 271(1)(c) - unexplained cash credit - penalty in respect of an amount of Rs. 8,85,000 found as cash at the business premises of the company - Held that:- penalty to levied only to the extent confirmed addition only. Penalty in respect of unexplained cash of Rs. 4,13,500. - Held that:- Once the quantum addition stood deleted by the Respected Co-ordinate Bench "D" and the explanation of the assessee about the source of the said cash was found satisfactory, therefore, there is no reason to impose concealment penalty to the extent of the said amount Penalty in respect of Unexplained cash Creditors. - Held that:- this is not the case of the revenue that the above referred alleged creditors were not found recorded in the books of account of the assessee. - a system was evolved, considering the large number of transaction, to record the names only. - when the cheques are received from the different parties and after encashing those cheques the cash was paid to those very parties. Since the transaction was squared up then and there, therefore, the explanation of the assessee was that for business point of view he was not required to maintain the record of full address and identity of those persons. - Penalty to be deleted.
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