Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 356 - ITAT, DELHIPenalty levied u/s 271(1)(c) – Whether penalty levied u/s 271(1)(c) on person on whom protective assessment made by AO - Directors admits they were carrying on the business of issuing accommodation entries – AO state that income is to be assessed in the hands of directors on substantive basis, but to protect interest of revenue, commission income earned in respect of these transactions is being assessed in the hands of the assessee, on protective basis – AO raised penalty u/s 271(1)(c) on assessee – Held that:- Even as per the Revenue, the income does not belong to the assessee, therefore, the assessee cannot be held to be guilty of concealment of income for which penalty u/s 271(1)(c) can be levied. The penalty, if any, can be levied in the hands of the person to whom the income actually belongs and not to the assessee in whose hands the department assessed the income on protective basis. Decision in favour of assessee
|