https://www.taxtmi.com/caselaws?id=237971 Penalty under section 271(1)(c) was not sustainable where reclassification of warehouse rental income from business income to income from house property did not increase taxable income. The assessed loss remained higher than the returned loss, so the adjustment did not create any tax liability or demonstrate concealment or furnishing of inaccurate particulars with intent to evade tax. In the absence of any addition to taxable income or other material showing tax evasion, the foundational requirement for levy of penalty was missing, and the penalty was rightly cancelled. en-us Wed, 09 Oct 2013 00:00:00 +0530 Sat, 12 Oct 2013 11:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=237971 Penalty under section 271(1)(c) was not sustainable where reclassification of warehouse rental income from business income to income from house property did not increase taxable income. The assessed loss remained higher than the returned loss, so the adjustment did not create any tax liability or demonstrate concealment or furnishing of inaccurate particulars with intent to evade tax. In the absence of any addition to taxable income or other material showing tax evasion, the foundational requirement for levy of penalty was missing, and the penalty was rightly cancelled. Case-Laws Income Tax Wed, 09 Oct 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=237971