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Penalty u/s. 271 (1) (c)

Others 875 views 2 replies

Hello, is their any solution for waiving of penalty u/s. 271 (1) (c) in following solution?

Assessee had received Rs. 700000 in cash from his uncle during AY 06-07 from uncles family income earned in previous year.Assessee deposited this money in bank and invested in MF's. The said bank a/c and investments were undisclosed in return of income as the assessee's intention was that this is not his income. In AIR information department caught this information from bank, and levied tax, the assessee has paid the tax assuming that this is his income, but later on AO levied penalty u/s. 271(1) (c), assessee has lost in CIT (A), whether it will be worth to go in ITAT??

Replies (2)

Yes. Penalty u/s 271 is very strict in sense only if the assessee is caught on mens re.

was 'uncle' not covered under the definition of relative as defined in section 56? If he was covered, the gift received from the uncle is exempt otherwise it is taxable. 


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