Case law - imposing penelty u\s 271(1)C

[GYAN JAIN]

The AO treat 25% of unverifible purchases as Income and trading addiion was made . Whether the AO can imposed penelty u\s 271(1)C or not . if not provide suitable case laws if any available

AI Summary

Debate on Penalties Under Sec 271(1)(c): Should Penalties Apply to Unverifiable Purchases or Focus on Tracing Suppliers? In a discussion about imposing penalties under section 271(1)(c) of the Income Tax Act, a user questioned whether an Assessing Officer (AO) can impose a penalty when 25% of unverifiable purchases are treated as income. One response suggested that penalties should not be imposed if the addition is based on technical grounds, but if the transaction is found to be bogus, penalties are justified. Another response emphasized verifying purchases through stock records, suggesting that penalties should not be imposed if purchases are verified, and that the AO should focus on tracing suppliers rather than penalizing buyers.