https://www.taxtmi.com/caselaws?id=249676 Penalty for concealment is not automatic merely because an addition is made in assessment. Trial-run receipts reduced from work-in-progress, fully disclosed in the balance sheet and consistently accounted for in prior years, supported a bona fide tax position; penalty was therefore deleted. Conversely, a debit-balance write-off attracted penalty because the taxpayer did not establish that it was a deductible business advance or had become irrecoverable, and the explanation lacked supporting evidence and bona fides. For computing tax sought to be evaded, the addition was treated as total income without a further Chapter VI-A deduction. Penalty was consequently sustained on that disallowance. en-us Mon, 19 May 2014 00:00:00 +0530 Fri, 20 Mar 2015 11:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249676 Penalty for concealment is not automatic merely because an addition is made in assessment. Trial-run receipts reduced from work-in-progress, fully disclosed in the balance sheet and consistently accounted for in prior years, supported a bona fide tax position; penalty was therefore deleted. Conversely, a debit-balance write-off attracted penalty because the taxpayer did not establish that it was a deductible business advance or had become irrecoverable, and the explanation lacked supporting evidence and bona fides. For computing tax sought to be evaded, the addition was treated as total income without a further Chapter VI-A deduction. Penalty was consequently sustained on that disallowance. Case-Laws Income Tax Mon, 19 May 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249676