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2009 (1) TMI 526 - AT - Income TaxPenalty u/s 271(1)(c) - concealment of income and furnished inaccurate particulars of income - HELD THAT:- We find that AO while making assessment has been calculated the income as per law on the basis of particulars of income furnished by the assessee. When the assessee furnished the relevant particulars of income, AO is duty bound to calculate the correct income. If AO discharge his duty in calculation of such income on the basis of particulars filed by the assessee, under that circumstances it cannot be held that the assessee has furnished inaccurate particulars of his income or has concealed the particulars of income. The assessee has furnished necessary explanation though not before AO but before the CIT(A) that the additions made are highly debatable legally. The assessee has substantiated its explanation filed before the CIT(A) and has proved that such explanation is bona fide and that all the facts relating to computation of total income have been disclosed by the assessee. The bona fide explanation of the assessee has not found false. Under the circumstances, we are of the considered view that neither the assessee has concealed its particulars of income nor has furnished such inaccurate particulars of income nor Explanation to section 271(1)(c) is applicable. We, therefore, find that this is not a fit case for levy of penalty u/s 271(1)(c). Accordingly, the penalty levied by the AO u/s 271(1)(c) and confirmed by the CIT(A) is hereby deleted. In the result, the appeal of the assessee is allowed.
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