https://www.taxtmi.com/caselaws?id=346661 Penalty under Section 271(1)(c) of the Income-tax Act was held not leviable where gift transactions were found unproved in quantum proceedings but not disproved. The assessee had produced supporting material, including seized documents and bank details of the alleged donors, and the explanation was not shown to be false. The addition survived because the donors were not produced and the transactions were not satisfactorily established to the Assessing Officer's satisfaction, but penalty proceedings are separate from assessment proceedings and cannot rest solely on an addition. In the absence of deliberate concealment or furnishing of inaccurate particulars, Explanation 1 did not justify penalty, and the penalty was deleted. en-us Wed, 05 Jul 2017 00:00:00 +0530 Mon, 21 Aug 2017 10:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=346661 Penalty under Section 271(1)(c) of the Income-tax Act was held not leviable where gift transactions were found unproved in quantum proceedings but not disproved. The assessee had produced supporting material, including seized documents and bank details of the alleged donors, and the explanation was not shown to be false. The addition survived because the donors were not produced and the transactions were not satisfactorily established to the Assessing Officer's satisfaction, but penalty proceedings are separate from assessment proceedings and cannot rest solely on an addition. In the absence of deliberate concealment or furnishing of inaccurate particulars, Explanation 1 did not justify penalty, and the penalty was deleted. Case-Laws Income Tax Wed, 05 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=346661