Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 273 - AT - Income TaxPenalty u/s 271(1)(c) - commission income on the bogus/accommodation entries computed @ 0.50% on the value of bogus transactions was added - Held that:- The assessee is a chartered accountant and it has been conclusively established that he was running various concerns/companies for providing bogus/accommodation entries also admitted by the assessee himself in the statement recorded. The various companies floated by the assessee were used for providing accommodation entries. It is established beyond any doubt that he was engaged in providing bogus/ accommodation entries. Further the order made by the AO clearly shows that AO has recorded satisfaction for initiating penalty u/s 271(1)(c) thus argument of assessee becomes irrelevant in view of the provisions of section 271(1B) wherein the order containing direction for initiating of penalty shall be sufficient to constitute satisfaction of the AO for initiating penalty. Further, assessee's plea that penalty cannot be levied on estimated income has no merits as the estimation of taxable income by way of estimate is one of the established method for computing income as assessee had not disclosed a full fact, therefore, the Assessing Officer, in such a situation, has no alternate but to estimate the income. Against assessee.
|