2017 (7) TMI 497

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.... dated 20 August 2015. The only point arising in this appeal is regarding the levy of penalty under Section 271(1)(c) of the Act in respect of sales to parties covered under Section 40A (2)(b) of the Income Tax Act. It appears that in the assessment year 2006-07 certain scrap was sold by the assessee to parties not covered under Section 40A (2)(b) of the Act @ Rs. 17,340/- per metric tone wherea....

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....dditions are made in the income by applying the deeming provisions the department cannot presume that there is concealment of income so as to attract penalty proceedings. In other words, where income is assessed on the basis of deeming provisions it would not amount to non-disclosure and as such it is not proper to impose penalty under Section 271 of the Act. In Commissioner of Income Tax Vs P. ....