ADDITION TO INCOME U/S 50C NOT LIABLE FOR PENALTY U/S 271 (1) (C)

                              ADDITION TO INCOME U/S 50C NOT LIABLE FOR PENALTY U/S 271 (1) (C)

Addition to income u/s 50C  is a fiction and operate in the limited sphere. It cannot be extended further to penalize the assessee.  If assessee had furnished all the facts of sale , documents/ material before AO, the genuineness of which was not doubted by AO. , and assessee agreed to the additions because of  deeming provision,  it can not be treated as filing of inaccurate particulars on the part of assessee. Therefore, penalty under section 271 (1) (c) cannot be levied on the basis of addition made under section 50C

Ref : Renu Hingorani v. ACIT (2011) 39 (II) ITCL 89 (Mum 'D'-Trib)

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