25 November 2009
assessee had already shown credit of Rs. 1,80,000 in his capital account for the year 2006-07 and on scrutiny declared such credit as gift received from non-relatives by submitting all the relevant documents as required by officer. AO make addition of such credit as gift u/s. 56(vi). Now is it the case of furnishing inaccurate particular of income entail penalty u/s.271(1)(c) ?
25 November 2009
Yes, the provisions of penalty regarding concealment of income u/s 271(1)(c) would be attracted & penalty of min. 100 % & max 300 % of tax sought to be evaded could be imposed. However, if the assessee prooves that there was a reasonable cause for failure, penalty could be waived off.
26 November 2009
The assessing officer may impose penalty u/s 271(1)(c) in this case because assessee has concealed income by furnishing inaccurate particulars.
In this case, it is very difficult to prove that there was some reasonable case for failure.
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