16 June 2010
show cause notice for 271(1)(c) recd from ITO on scrutiny assessment. The addition made by ITO is base on adhoc basis I.E % wise disallowances and one voucher for labour wages is missing at the time of showing records and One of unsecured loan confirmation is not received due to non availability of party at the time of producing the confirmation. I need to file reply for droping said penalty proceeding. Plese suggest how to file said replly
Held that penalty cannot be levied on additions sustained by estimating the yield, based on % of yield of preceding year, when there is no evidence on record to prove that there were sales outside the books. Further the fact that additions made in assessment proceedings is a material fact, can not be considered as conclusive and concrete to prove the concealment. Sangrur Vanaspati Mills Ltd. vs. ACIT (2009) 179 Taxman 27 (Chandigarh) (A.Y. 1992-93 & 1993 -94)
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