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2017 (1) TMI 1327 - AT - Income TaxLevy of penalty u/s.271(1)(c) - surrender of income on account of investigation to buy the peace - bogus purchase - revised return fled - Held that:- During the assessment an information was received from DGIT (Inv.), Mumbai about the four firms engaged in Hawala entries. The name of the four firms were Ganesh Enterprises, Amar Enterprises, Saradge Enterprises and Anshu Mercantile Pvt. Ltd. Notice was given to the assessee but there was no proper reply, however, the assessee accepted the bogus purchase to buy peace and paid the tax accordingly. In the said circumstances the said law is not applicable to the facts of the case. Moreover the law relied by the departmental representative speaks that surrender of income on account of investigation to buy the peace is not voluntarily and statute does not recognize these type of defenses under the explanation 1 to section 271(1)(c) of the Act. Admission of bogus purchases leads to the concealment of income and furnishing the inaccurate particulars of income in the return. The surrender of income was not voluntarily and it is a fit case to levy the penalty. Therefore, in view of the law settled in Mak Data P. Ltd. Vs. Commissioner of Income Tax [2013 (11) TMI 14 - SUPREME COURT] we are of the view that it is a fit case to levy the penalty, hence the order passed by the CIT(A) is correct and in accordance with law which is not liable to be interfere with at this appellate stage. - Decided against assessee.
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