Case Law Details
Brief Facts of the Case
During assessment, the AO found 6 undisclosed bank accounts while scrutinizing the transactions in an undisclosed bank account as the said bank account had transfer entries to other 5 bank accounts.
In addition to assessing the undisclosed income to tax as the assesse was unable to disclose the source of deposit, the AO also levied penalty under section 271(1)(c) based on the peak balance in all the 6 bank accounts amounting to 1,33,400/- for Assessment Year 1991-92 and Rs 3,88,700/- for Assessment Year 1992- 93.
The assesse claimed that the AO had made an estimate of the peak balance for levying the penalty and penalty under section 271(1)(c) cannot be levied on estimate basis. The assesse also submitted that only 1 undisclosed bank account was found by AO and other 5 bank accounts were voluntary disclosed by assesse however while levying penalty the AO considered the peak balances of all the 6 bank accounts.
Question of Law
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Dear Sir,
Govt. made it mandatory for all taxpayer if IT that to show all banks details.
Pls let me know what if not showing all the banks details.
BR,
Ketan