https://www.taxtmi.com/caselaws?id=9743 The High Court set aside a penalty imposed on an individual under section 271(1)(c) of the Income-tax Act, 1961, for non-disclosure of interest income derived from fixed deposits seized during a search. The Court emphasized the importance of assessing the reasonableness of the explanation provided by the assessee before imposing a penalty. It found that the explanation offered was reasonable, indicating good faith on the part of the assessee, and criticized the unnecessary focus on wilful neglect and concealment by the Tribunal. The penalty was deemed unjustified, and the Court ruled in favor of the assessee, setting it aside. en-us Wed, 25 Jan 2006 00:00:00 +0530 Tue, 30 Jun 2009 10:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9743 The High Court set aside a penalty imposed on an individual under section 271(1)(c) of the Income-tax Act, 1961, for non-disclosure of interest income derived from fixed deposits seized during a search. The Court emphasized the importance of assessing the reasonableness of the explanation provided by the assessee before imposing a penalty. It found that the explanation offered was reasonable, indicating good faith on the part of the assessee, and criticized the unnecessary focus on wilful neglect and concealment by the Tribunal. The penalty was deemed unjustified, and the Court ruled in favor of the assessee, setting it aside. Case-Laws Income Tax Wed, 25 Jan 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9743