Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
Imposition of penalty u/s 271(1)(c) of the Income Tax Act for two types of additions: (1) the addition made u/s 50C on the difference between stamp duty value and sale consideration, and (2) the addition on account of negative cash balance in the books. Regarding the Section 50C addition, it was held that penalty u/s 271(1)(c) cannot be levied when the assessee has not actually received any money over the declared sale consideration, as the addition is based on a deeming fiction. This follows the precedent set in Madan Theatres Ltd. case. However, for the addition due to negative cash balance found in the books, the assessee could not offer an explanation for the excess cash deposited in the bank account. It was held that voluntary disclosure does not preclude penalty u/s 271(1)(c), and since the surrender was after detection, it cannot be considered voluntary. Therefore, the penalty u/s 271(1)(c) was rightly levied by the Assessing Officer and confirmed by the CIT(A). The decision was partly in favor of the assessee, allowing the penalty on Section 50C addition but upholding the penalty on the negative cash balance addition.
Imposition of penalty u/s 271(1)(c) of the Income Tax Act for two types of additions: (1) the addition made u/s 50C on the difference between stamp duty value and sale consideration, and (2) the addition on account of negative cash balance in the books. Regarding the Section 50C addition, it was held that penalty u/s 271(1)(c) cannot be levied when the assessee has not actually received any money over the declared sale consideration, as the addition is based on a deeming fiction. This follows the precedent set in Madan Theatres Ltd. case. However, for the addition due to negative cash balance found in the books, the assessee could not offer an explanation for the excess cash deposited in the bank account. It was held that voluntary disclosure does not preclude penalty u/s 271(1)(c), and since the surrender was after detection, it cannot be considered voluntary. Therefore, the penalty u/s 271(1)(c) was rightly levied by the Assessing Officer and confirmed by the CIT(A). The decision was partly in favor of the assessee, allowing the penalty on Section 50C addition but upholding the penalty on the negative cash balance addition.
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TaxTMI 
TaxTMI 
of 4918 
