Case Law Details
Penalty proceedings- Mere submitting a claim which is incorrect in law would not amount to giving inaccurate particulars of income of assessee, but if claim besides being incorrect in law is malafide, Explanation 1 to section 271(1)(c) comes into play and work to disadvantage of assessee.
If the assessee makes a claim which is not only incorrect in law but is also wholly without any basis and the explanation furnished by him for making such a claim is not found to be bonafide, it would be difficult to say that he would still not be liable to penalty under section 271(1)(c).
ITAT, AHMEDABAD BENCH `B’,
Gujarat State Financial Services Ltd. Vs. ACIT
ITA Nos. 2078/Ahd/2006 & 2526/Ahd/2006,
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It is true but the officials misuse their powers and post and hresh the assessee without any finding in the order. They followed that it is mandatory to do so in the case of addition.