Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (6) TMI 284 - AT - Income TaxAdditions regarding non-furnishing of complete details on account of concealed income – Held that:- No return of income had been filed by the assessee for the year under consideration, contending that his income for the year under consideration was below the taxable limit - CIT (A) restricted the addition on the basis of the material available on record - after accounting for the cash deposits and the cash withdrawals, the source of the amount of Rs. 1,77,000/- as on 5.6.04, remained unexplained - CIT (A) treated this amount of Rs. 1,77,000/- as the assessee’s income from undisclosed courses – the figure was seen to work out to a profit rate of 14.9% on a turnover of Rs. 11,88,000 - This was found to be much higher than the presumptive rate of net profit applicable in terms of the provisions of Section 44AF of the Act - Revenue has not been able to successfully refute the facts duly taken into consideration and discussed in detail by the CIT (A) in the order - the approach of the CIT (A) in adopting the peak of the deposits and withdrawals during the year, to be well justified – Decided against Revenue. Deletion of penalty u/s 271(1)(c) of the Act – Held that:- CIT (A) was of the view that since no return of income had been filed, despite the assessee having taxable income as determined by the AO, the whole of the income determined by the AO represented the concealed income of the assessee and that therefore, penalty u/s 271 (1)(c) of the IT Act had rightly been imposed on the assessee - CIT (A) restricted the undisclosed income of the assessee to Rs. 1,77,000 – the CIT (A) has rightly directed the AO to re-compute the amount of penalty after giving effect to the CIT(A)’s appeal order in the quantum case - The penalty to the extent of Rs. 3,14,754/- has been rightly deleted - the provisions of Section 271 (1)(c) of the Act are not attracted – Decided against Revenue.
|