Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
The Assessing Officer (AO) consciously deleted irrelevant portions from the show cause notice, mentioning only the charge of furnishing inaccurate particulars of income. This constituted a correct charge for initiating penalty u/s 271(1)(c). There was no defect in recording satisfaction or issuing the show cause notice u/s 274 read with Section 271(1)(c) for initiating penalty proceedings. Once penalty proceedings were initiated on a definite charge and made known to the assessee through the assessment order and show cause notice, the assessee's objection holds no ground. Levy of penalty u/s 271(1)(c) is proper and justified as it is a case of furnishing incorrect particulars of income by claiming business loss instead of speculative loss not permissible under the Act. The Appellate Tribunal (ITAT) dismissed the assessee's appeal and upheld the Commissioner of Income Tax (Appeals)'s order confirming the penalty u/s 271(1)(c).
The Assessing Officer (AO) consciously deleted irrelevant portions from the show cause notice, mentioning only the charge of furnishing inaccurate particulars of income. This constituted a correct charge for initiating penalty u/s 271(1)(c). There was no defect in recording satisfaction or issuing the show cause notice u/s 274 read with Section 271(1)(c) for initiating penalty proceedings. Once penalty proceedings were initiated on a definite charge and made known to the assessee through the assessment order and show cause notice, the assessee's objection holds no ground. Levy of penalty u/s 271(1)(c) is proper and justified as it is a case of furnishing incorrect particulars of income by claiming business loss instead of speculative loss not permissible under the Act. The Appellate Tribunal (ITAT) dismissed the assessee's appeal and upheld the Commissioner of Income Tax (Appeals)'s order confirming the penalty u/s 271(1)(c).
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4916 
