Fictitious cash sales to claim exemption under Section 80-IC not become genuine merely for acceptance by VAT Authorities

PCIT Vs J.M.J. Essential Oil Company (Himachal Pradesh High Court) The question that requires consideration in the present case is as to whether penalty could have been imposed on the respondent under Section 271(1)(c) on the ground that the respondent had furnished inaccurate particulars of his income in the garb of fictitious cash sales with a view to claim exemption under Section 80-IC of the Act. The Assessing Officer while examining the return filed by the respondent with respect to Financial Year 2006-2007 (Assessment Year 2007­-2008) under Section 143(3) of the Act, vide order dated 24...