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2016 (11) TMI 887 - AT - Income TaxPenalty u/s 271(1)(c) - Held that:- Evidence possessed by the AO is an information transmitted by the Department from the assessment proceedings of M/s.Prakash Marbles and Engineering Company. There is no independent affidavit collected from the proprietor of Girnar Sales Corporation and M/s.Shiv Metal Corporation. The assessee was not provided material collected in the assessment proceedings of different entities. The assessee has given complete details as to how it had made payment through account payee cheque and how it has procured material. If both these set of evidences are weighed together, then, scale would tilt in favour of the assessee, because there is no crossverification at the end of the AO by confronting the material to the assessee which was collected from the proceedings of a third concern. The AO failed to prove that bills and other evidences submitted by the assessee are factually false. The addition has been made on an estimate basis, thus penalty need not to be imposed - Decided in favour of assessee.
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