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2015 (11) TMI 1437 - AT - Income TaxPenalty u/s 271(1)(c) - bogus liability - Applicability of Section 41(1) - Held that:- AO has questioned the genuineness of the liability and in absence of the requisite confirmation, has held the same to be a bogus liability. Where the liability itself has been held to be a bogus liability, where is the question of remission or cessation thereof. Thus, in the instant case, where the addition itself is doubtful under the provisions of section 41(1), the same cannot form the basis for levy of penalty. See COMMISSIONER OF INCOME TAX Versus BHOGILAL RAMJIBHAI ATARA[2014 (2) TMI 794 - GUJARAT HIGH COURT]. Thus we delete the penalty levied under section 271(1)(c)
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