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...
The ITAT held that the penalty under section 271(1)(c) for furnishing inaccurate particulars of income was unsustainable where the assessee voluntarily disclosed additional income in returns filed under section 148 during assessment proceedings. The Tribunal observed absence of incriminating evidence or suppression, acceptance of revised returns by the AO without adverse inference, and reliance on precedents affirming that mere surrender of income or disallowance without concealment does not attract penalty. Furthermore, the AO failed to record satisfaction under either limb of section 271(1)(c), rendering the penalty proceedings invalid. Consequently, the penalty imposed for all five assessment years was quashed and the assessee's appeal allowed.
The ITAT held that the penalty under section 271(1)(c) for furnishing inaccurate particulars of income was unsustainable where the assessee voluntarily disclosed additional income in returns filed under section 148 during assessment proceedings. The Tribunal observed absence of incriminating evidence or suppression, acceptance of revised returns by the AO without adverse inference, and reliance on precedents affirming that mere surrender of income or disallowance without concealment does not attract penalty. Furthermore, the AO failed to record satisfaction under either limb of section 271(1)(c), rendering the penalty proceedings invalid. Consequently, the penalty imposed for all five assessment years was quashed and the assessee's appeal allowed.
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TaxTMI 
TaxTMI 
of 4918 
