Tax Penalties: Section 271(1)(c) Penalty Partially Upheld; Negative Cash Balance Penalty Stands, Section 50C Overturned.

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....Imposition of penalty u/s 271(1)(c) of the Income Tax Act for two types of additions: (1) the addition made u/s 50C on the difference between stamp duty value and sale consideration, and (2) the addition on account of negative cash balance in the books. Regarding the Section 50C addition, it was held that penalty u/s 271(1)(c) cannot be levied when the assessee has not actually received any money over the declared sale consideration, as the addition is based on a deeming fiction. This follows the precedent set in Madan Theatres Ltd. case. However, for the addition due to negative cash balance found in the books, the assessee could not offer an explanation for the excess cash deposited in the bank account. It was held that voluntary disclosu.........