Tribunal cancels penalties for inaccurate income particulars in appeal decisions for AY 1996-97 & 1997-98 The Tribunal allowed the assessee's appeals for Assessment Years 1996-97 and 1997-98, setting aside the penalties imposed under section 271(1)(c) for ...
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Tribunal cancels penalties for inaccurate income particulars in appeal decisions for AY 1996-97 & 1997-98
The Tribunal allowed the assessee's appeals for Assessment Years 1996-97 and 1997-98, setting aside the penalties imposed under section 271(1)(c) for furnishing inaccurate particulars of income. For the Assessment Year 1996-97, the penalty of Rs. 3,23,040/- was deleted as the Tribunal sustained additions at 25% of bogus purchases. Similarly, for the Assessment Year 1997-98, the penalty of Rs. 1,31,039/- was deleted as additions for payments on bogus purchases were partially deleted by the Tribunal, rendering the penalties baseless.
Issues involved: Appeal against penalty u/s 271(1)(c) for furnishing inaccurate particulars of income for Assessment Years 1996-97 & 1997-98.
Assessment Year 1996-97: The Assessing Officer made additions for bogus purchases, confirmed by CIT(Appeals), leading to penalty u/s 271(1)(c). Tribunal sustained addition at 25% of bogus purchases, following precedent where penalty was deleted for estimated additions. Penalty of Rs. 3,23,040/- for this year was deleted.
Assessment Year 1997-98: Additions for payments on bogus purchases were partially deleted by Tribunal, rendering the penalty baseless. Penalty of Rs. 1,31,039/- for this year was deleted.
The Tribunal allowed the appeals of the assessee for both years, setting aside the penalties imposed.
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