Fraudulently obtained SEIS scrips cannot support customs exemption; recovery, confiscation and penalties were sustained, but employee penalty fell awa...
The text examines imposition of penalty under s.271(1)(c) for bogus purchases and states the controlling legal point that an Assessing Officer must form a clear subjective satisfaction that the assessee consciously concealed particulars of income or deliberately furnished inaccurate particulars before levying penalty; mere ad hoc estimation of profit in bogus purchases does not suffice. The appellate authority reduced the added profit percentages, and the article concludes that where the AO restricted profit element by estimation without a finding of deliberate concealment or inaccurate particulars, penalty could not be sustained, resulting in a decision favorable to the assessee.
The text examines imposition of penalty under s.271(1)(c) for bogus purchases and states the controlling legal point that an Assessing Officer must form a clear subjective satisfaction that the assessee consciously concealed particulars of income or deliberately furnished inaccurate particulars before levying penalty; mere ad hoc estimation of profit in bogus purchases does not suffice. The appellate authority reduced the added profit percentages, and the article concludes that where the AO restricted profit element by estimation without a finding of deliberate concealment or inaccurate particulars, penalty could not be sustained, resulting in a decision favorable to the assessee.
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