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2016 (5) TMI 36 - AT - Income TaxPenalty u/s. 271(1)(c) - undisclosed share application money introduced - Held that:- As can be seen from the order of the AO as well as CIT(A) in the assessment proceedings, the entire share application money in this Private Limited company was from the Directors or from their minor children. The proceedings were also consequent to search operations conducted in that group. Still AO records that assessee has not proved the genuineness of creditors, identity and creditworthiness while making the addition. Ld. CIT(A) gave relief to the extent of the investments made by the Director as they are Income tax assessees’, who also confirmed the investment made in the name of minor children. As pointed out by the Ld. Counsel, assessee did not prefer an appeal due to smallness of the tax involved. That does not mean that there is concealment of income, more so, by way of furnishing of inaccurate particulars so as to attract penalty u/s. 271(1)(c) of the Act. Mere disallowance in assessment or addition by invoking the deeming provisions does not automatically attract the provisions of Section 271(1)(c), unless the conditions thereon are satisfied. The facts of the case does not fall either under the head ‘concealment of income’ or under the head ‘furnishing of inaccurate particulars’. All the necessary details were furnished by assessee and there is no furnishing of inaccurate particulars in this case. - Decided in favour of assessee
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