https://www.taxtmi.com/caselaws?id=66950 The tribunal allowed the appeal against the penalty imposed under s. 271(1)(c) for under-valuation of closing stock and disallowance of salaries. It was held that the penalty was incorrectly calculated, as the disclosed income was higher than the income finally determined, making the Explanation inapplicable. Additionally, the tribunal found that the difference in the valuation of closing stock was minimal and not sufficient for a penalty. The tribunal also ruled that no penalty could be levied on salaries paid to partners and upheld the disallowance of the remaining salary item. Consequently, the penalty of Rs. 31,000 was quashed. en-us Sat, 27 Dec 1975 00:00:00 +0530 Tue, 08 Mar 2011 13:01:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66950 The tribunal allowed the appeal against the penalty imposed under s. 271(1)(c) for under-valuation of closing stock and disallowance of salaries. It was held that the penalty was incorrectly calculated, as the disclosed income was higher than the income finally determined, making the Explanation inapplicable. Additionally, the tribunal found that the difference in the valuation of closing stock was minimal and not sufficient for a penalty. The tribunal also ruled that no penalty could be levied on salaries paid to partners and upheld the disallowance of the remaining salary item. Consequently, the penalty of Rs. 31,000 was quashed. Case-Laws Income Tax Sat, 27 Dec 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66950