Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1883 - AT - Income TaxPenalty u/s. 271(1)(c) - Addition u/s 68 - HELD THAT:- We hold that the notice issued u/s 271 r.w.s. 274 of the Act is not valid and consequential penalty proceedings are not sustainable. Assessee has furnished all the relevant material before the AO both during the assessment proceedings as well as during the penalty proceedings to prove the identity, creditworthiness and genuineness of the transaction of payment of share application money, but, the AO had failed to carry out proper investigation to verify the documents such as PAN, etc. Further, he also brought out that the AO has not recorded satisfaction about concealment of income or furnishing of inaccurate particulars of income by the assessee. Assessee has produced relevant material, but, since AO was not satisfied with the same, he made addition. Assessee, in order to avoid further litigation, has not appealed, but, that does not mean that the addition will automatically attract penalty provisions. - Decided in favour of assessee.
|