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2020 (4) TMI 525 - AT - Income TaxPenalty u/s 271(1)(c) - estimated income only due to proceeding u/s 132 - assessee has disclosed the commission income earned from accommodation entries provided by him which varies from transaction to transaction between @ 0.02% to 0.05% and assessee came forward voluntarily offered 0.02% as commission income - HELD THAT:- Assessee has completely gave the information which is agreeable to the AO and cooperated to complete the assessment with real income. Accordingly, AO made reasonable estimation on the profit. Penalty cannot be imposed when the income of the assessee is estimated. Defective notice u/s 274 - as per assessee notice issued by the AO is defective since AO has not brought of record the reason for levy of penalty - HELD THAT:- We notice that in the assessment order, AO has made it clear that penalty proceedings are initiated separately for furnishing inaccurate particulars of income, therefore the AO has already indicated that why the penalty proceedings are initiated. Therefore, we reject the contention of the assessee that notice is defective.
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