Penalty u/s 271(1)(c)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2010 Dear All,

The ITO has assessed penalty u/s 271(1)(c) of Rs. 231000/-. Actually the assessee forget to include the following in return filed in original.

1. Capital Gain on ESOP of Rs. 16 Lac
2. Unexplained expenditure of Rs. 50,000/- paid through credit card
3. Unexplained cash deposit in S.B. A/c
4. Deduction u/s 54 of Rs. 10 Lac.

The AO added the income aforesaid and allow the deduction u/s 54 and raise a demand of Rs. 12000/-. The assessee accept the above addition at the time of assessment proceeding and submitted to AO for the addition. The assessee deposited the demand of Rs. 12000/-. Now the A.O. has issued the penalty order of Rs. 231000/- imposing penalty on equal tax amount relevant to concealed income.

Please guide us whether assessee should be penalise upto Rs. 12000/- as the net impact of the tax evasion had been Rs. 12000/-.

Please cite additional reference.

Thanks in Advance.

Nitin Kumar

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

17 June 2010 Minimum penalty is the amount of tax to be evaded. However, addition made on account of items 1 and 2 above would not automatically justify the imposition of penalty. So on this limited issue, as per my understanding, appeal can be preferred.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Aakash Kumar

Sivashankary Sivaramakrishnan

Sasidhar B

ASIM ATREY AND ASSOCIATES

SANJAY GOSALIA

Subscribe Now

Penalty u/s 271(1)(c)

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA