https://www.taxtmi.com/caselaws?id=65919 The Tribunal ruled in favor of the assessee, a retail cloth business firm, in a penalty appeal under s. 271(1)(c) for asst. yr. 1983-84. The Tribunal found discrepancies in the Department's evidence regarding a cash credit of Rs. 7,000, emphasizing the need to establish the source and genuineness of the credit. Lack of conclusive evidence and failure to prove mens rea led the Tribunal to cancel the imposed penalty of Rs. 1,297, highlighting the importance of substantial proof in penalty proceedings. The Tribunal accepted the argument that no adverse inference can be drawn for small tax amounts, ultimately ruling in favor of the assessee and canceling the penalty. en-us Wed, 29 Apr 1992 00:00:00 +0530 Sat, 19 Feb 2011 12:39:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65919 The Tribunal ruled in favor of the assessee, a retail cloth business firm, in a penalty appeal under s. 271(1)(c) for asst. yr. 1983-84. The Tribunal found discrepancies in the Department's evidence regarding a cash credit of Rs. 7,000, emphasizing the need to establish the source and genuineness of the credit. Lack of conclusive evidence and failure to prove mens rea led the Tribunal to cancel the imposed penalty of Rs. 1,297, highlighting the importance of substantial proof in penalty proceedings. The Tribunal accepted the argument that no adverse inference can be drawn for small tax amounts, ultimately ruling in favor of the assessee and canceling the penalty. Case-Laws Income Tax Wed, 29 Apr 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65919