No Penalty for Doubtful addition U/s. 41(1) of Income Tax Act, 1961

Smt. Sumitra Devi Agarwal Vs. ITO (ITAT Jaipur)- The AO has questioned the genuineness of the liability and in absence of the requisite confirmation, has held the same to be a bogus liability. Where the liability itself has been held to be a bogus liability, where is the question of remission or cessation thereof. Thus, in the instant case, where the addition itself is doubtful under the provisions of section 41(1), the same cannot form the basis for levy of penalty. INCOME TAX APPELLATE TRIBUNAL, JAIPUR BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YADAV, AM ITA No. 687/JP/2011 Assessm...