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2016 (5) TMI 464 - AT - Income TaxPenalty u/s 271(1)(c) - inaccurate particulars of income towards unverifiable purchases - Held that:- Purchases are supported with the bills issued by the suppliers and the purchases of the assessee have not been questioned by the Assessing Officer during the course of assessment proceedings and neither any details are available on record to prove that additions have been made in the previous years in regard to unverifiable purchases. Also books of account of the assessee are audited under the Companies Act and under the provisions of section 44AB of the Act and they have not been rejected by the assessing authority. In such situation ld. Assessing Officer cannot draw an inference that assessee has furnished inaccurate particulars of income because records were duly submitted and no independent enquiry was carried out by the Assessing Officer to prove that balance standing under the head sundry creditors were not genuine The assessee has duly shown complete details of sundry creditors in its return of income for this year under appeal and in past also and addition for unverifiable purchases have been made without conducting any independent enquiry therefore, it is not a fit case for levy of penalty u/s 271(1)(c) of the Act. - Decided in favour of assessee.
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