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2016 (9) TMI 1065 - AT - Income TaxPenalty under section 271(A)(c) - additions made on account of shortage of stock treated as unaccounted sales and disallowance of remuneration to partner paid to the private limited company - Held that:- So far the penalty levied on account of shortage of stock, it was incumbent upon the assessee to give true and fair picture of the stock. Since the assessee failed to do so, in our considered view, the penalty levied on this amount cannot be deleted. However, in respect of claim of remuneration paid to the working partner, in our considered opinion, the ld. CIT(A) was not justified in sustaining the penalty in view of the judgment of the Hon’ble Supreme Court in the case of Reliance Petroproducts (P) Ltd (2010 (3) TMI 80 - SUPREME COURT ). Respectfully following the ratio of decision of Hon’ble Supreme Court in the case of Reliance Petroproducts (P) Ltd (supra), we hereby direct the Assessing Officer to delete the penalty on the addition made on account of disallowance of remuneration paid to the working partner. Thus, this ground of the assessee’s appeal is partly allowed.
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