The appellant firm revalued the stock in trade and \u00a0the amount was withdrawn . The AO doubted the genuineness \u00a0of transaction. \u00a0Quantum addition is affirmed by the Tribunal .The AO \u00a0\u00a0levied the penalty \u00a0under Section 271(1)(c) for concealment of income. CIT(A) deleted the penalty . Tribunal affirmed the order of the AO. \u00a0On appeal affirming the order of the Tribunal \u00a0the Court held that \u00a0the appellant\u2019s transaction i.e. revaluing the asset, introducing it into the partnership, and withdrawing substantial funds, amounted to a device to evade tax rather than a genuine business transaction and also held that merely filing a capital account copy along with the tax return did not amount to full disclosure. \u00a0Court also held that the explanation offered by the appellant was found to be patently false and \u00a0the appellant failed to substantiate or demonstrate that such explanation was bona fide. \u00a0( ITA No.302 of 2002 dt .31 -1 -2025 \u00a0\u00a0(AY.1984 -85\u00a0 )<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 271(1): Penalty \u2013 Concealment \u2013 Revaluing the asset, introducing it into the partnership, and withdrawing substantial funds, amounted to a device to evade tax rather than a genuine business transaction- The Explanation offered by the Appellant was found to be patently false – Levy of concealment penalty is affirmed . [ S.260A ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50648","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-daU","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50648"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50648\/revisions"}],"predecessor-version":[{"id":56050,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50648\/revisions\/56050"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}