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2018 (11) TMI 1908 - ITAT SURATPenalty u/s 271(1)(c) - whether such penalty is being imposed for concealment of income or furnishing of inaccurate particulars of income? - AO has to record a specific finding exhibiting the fact that penalty is being imposed for furnishing inaccurate particulars or concealment of income - HELD THAT:- A perusal of the above finding would indicate that in the first two lines, he wished to impose penalty for furnishing inaccurate particulars of income. Thereafter, he invoked Explanation 1 to section 271(1)(c) which provides that if any addition is being made to the total income of the assessee, for which the assessee failed to give any explanation or his explanation was found to be false, then qua that addition it will be deemed that the assessee has concealed income. Both these situations are contradictory to each other in the above order. Therefore, this order is not sustainable in view of decision of Hon’ble Gujarat High Court [2012 (12) TMI 981 - HIGH COURT OF GUJARAT] Similar finding in para-6 are being recorded in the cases of other two assesses. In view of the above discussion, penalties in the case of each assessee are not sustainable. We allow all three appeals, and delete penalty imposed by the AO. Decided in favour of assessee.
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