16 June 2015
sir, i have received a penality notice u/s 274 read with section 271(1)(c)stating that as conformation letter from few of sundry debtors amounting to Rs. 28,279/- could not be produced during scrutiny and hence same was treated as concealment of income and added back to the income and asking me to pay additional tax. But in the consequent years amounts loaned to them have been received back.will it be concealment of income and attracts penality.Can you please let me know the related case laws if any.
19 June 2015
SUNDRY DEBTORS APPEARED IN THE BOOK BY CREDITING INCOME WHICH HAS ALREADY SUFFERED TAX. THEREFORE, NON CONFIRMATION OF THE SAME CANNOT BE TREATED AS INCOME. YOU SHOULD HAVE FILE APPEAL AGAINST THE SO CALLED ADDITION. HOWEVER, NOW YOU CAN TAKE THIS GROUND IN PENALTY PROCEEDING. NON CONFIRMATION OF A BALANCE DOES NOT AUTOMATICALLY LEAD TO CONCEALMENT OF INCOME.
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