Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 985 - ITAT JAIPURPenalty levied u/s 271(1)(c) - addition on account of salary claimed by the assessee which was found to be bogus and false - HELD THAT:- Tribunal has confirmed the additions made by the AO and also observed that even after the addition made by the AO the net profit rate comes to 0.12% which is comparable to the another case which has been considered by the Coordinate Benches of this Tribunal. Hence, the said finding of the Tribunal cannot be said to be an addition based on estimation but while upholding and confirming the additions made by the AO, the Tribunal has just verified the reasonableness of the income assessed and not granted any relief to the assessee on the claim of salary expenses found to be bogus and false. Accordingly, when the assessee has claimed a bogus salary expenditure and the addition was made specifically and independently by the AO on account of disallowance of salary then the penalty levied by the AO u/s 271(1)(c) in respect of the said addition is justified and valid. The decisions relied upon by the assessee will not help the case of the assessee when the addition was based on false claim made by the assessee. Accordingly, we do not find any error or illegality in the impugned order of the ld. CIT(A) confirming the levy of penalty u/s 271(1)(c) of the Act. Appeal filed by the assessee is dismissed.
|