PENALTY U/S 271 1C

The levy of penalty u/s 271(1)(c) shall be levied only when there is a positive act on the part of the assessee as to concealment of income or furnishing of inaccurate particulars of income. It has to be shown beyond doubt that the assessee had disclosed the gains under STCG instead of business income with an intent to evade tax. Where there are possibility of two opinion on a question and the AO adopts one such view, no penalty can be levied.

Refer to CIT V. Reliance Petro Products [2010] (SC)