Whether cash sales be treated as cash credit by IT authorities
Last updated: 23 July 2022
Court :
Himachal Pradesh High Court
Brief :
Section 271(1)(c) cast responsibility upon the AO to reach the clear finding with respect to levy of penalty under the specific charge and if the AO fails to do so then the penalty cannot be levied as such penalty order shall not be maintainable in the eyes of law. In the given case the Cash Sales by the assessee has been proved and substantiated with proof such as bills, invoices , VAT returns and Sales Tax Assessment Orders. Mere not mentioning address and details of customers on sales bills did not allow AO to consider the Cash Sales as undisclosed income and an arrangement by the assessee to introduced unaccounted money to claim the same U/s. 80IC of the IT Act,1961.
Citation :
PCIT Shimla Vs JMJ Essential Oil Company
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FCS Deepak Pratap Singh
Published in Income Tax
Views : 1163
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