Reassessment under s.148A held valid; s.69 additions totaling Rs.7,00,000 deleted after acceptable contemporaneous explanations for property investmen...
Adjudication set aside; Rule 9 valuation based on internet engineer report quashed for Rule 3(4) non-compliance; Section 138B cross-examination requir...
ITAT allowed the appeal and set aside the penalty under s. 271(1)(c) imposed by the AO. The Tribunal accepted that certain book entries were false and disallowance for bogus purchases was reduced from 100% to 12.5% to tax the embedded profit, but held that the penalty could not be sustained because the AO charged concealment of income without specifying how concealment occurred. Applying the principle of strict construction of penal provisions, ITAT found a material disconnect between the factual findings and the statutory charge; in absence of a requisite and specific charge of concealment, levy of penalty was held invalid and quashed.
ITAT allowed the appeal and set aside the penalty under s. 271(1)(c) imposed by the AO. The Tribunal accepted that certain book entries were false and disallowance for bogus purchases was reduced from 100% to 12.5% to tax the embedded profit, but held that the penalty could not be sustained because the AO charged concealment of income without specifying how concealment occurred. Applying the principle of strict construction of penal provisions, ITAT found a material disconnect between the factual findings and the statutory charge; in absence of a requisite and specific charge of concealment, levy of penalty was held invalid and quashed.
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