20 January 2012
My Client has agreed for the addition of Advances received from Customers as unexplained credit. The ACIT has issued a demand notice for the tax amount. Is there any case law evidencing waiver of penalty in such a stuation.
22 January 2012
Penalty is leviable only when assessee conceals or furnish inaccurate particulars of income. In this case your client has not concealed or furnished inaccurate particulars. He could not prove the money received as advance. In case additions agreed on things like party not traceable or non-cooperation from the party despite giving PAN address, assessment details etc penalty need not be levied.
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