https://www.taxtmi.com/caselaws?id=291896 The Tribunal canceled the penalty of Rs. 5,75,000 imposed under section 271(1)(c) for the Assessment Year 2004-05, as it was deemed illegal and against natural justice principles. The penalty related to excess stock was also canceled, as it was treated as business income, allowing for higher partner remuneration deductions. The matter of an addition under section 68 was sent back to the AO for fresh decision, with the possibility of initiating penalty proceedings. The appeal was allowed, and the penalty was ultimately canceled. en-us Fri, 05 Aug 2011 00:00:00 +0530 Tue, 11 Apr 2023 17:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291896 The Tribunal canceled the penalty of Rs. 5,75,000 imposed under section 271(1)(c) for the Assessment Year 2004-05, as it was deemed illegal and against natural justice principles. The penalty related to excess stock was also canceled, as it was treated as business income, allowing for higher partner remuneration deductions. The matter of an addition under section 68 was sent back to the AO for fresh decision, with the possibility of initiating penalty proceedings. The appeal was allowed, and the penalty was ultimately canceled. Case-Laws Income Tax Fri, 05 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291896