https://www.taxtmi.com/caselaws?id=22541 Mere erasures or mistakes in account books do not, by themselves, establish falsity, concealment, fraud, or gross or wilful neglect so as to attract penalty under section 271(1)(c) of the Income-tax Act, 1961. Where the Tribunal found no material showing omission of relevant facts or any basis to treat the accounts as fabricated, and the income was only estimated after rejection of the books, that finding could not be said to be perverse. On that footing, the penalty could not be sustained. The reference was answered in favour of the assessee and cancellation of the penalty was upheld. en-us Mon, 13 Mar 1989 00:00:00 +0530 Fri, 11 Dec 2009 10:54:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=22541 Mere erasures or mistakes in account books do not, by themselves, establish falsity, concealment, fraud, or gross or wilful neglect so as to attract penalty under section 271(1)(c) of the Income-tax Act, 1961. Where the Tribunal found no material showing omission of relevant facts or any basis to treat the accounts as fabricated, and the income was only estimated after rejection of the books, that finding could not be said to be perverse. On that footing, the penalty could not be sustained. The reference was answered in favour of the assessee and cancellation of the penalty was upheld. Case-Laws Income Tax Mon, 13 Mar 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=22541