Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 1219 - AT - Income TaxLevy of penalty under section 271(1)(c) - assessee wrongly claimed exemption under section 11 - Held that:- Merely because the claim of the assessee for deduction under section 11 of the Act was not accepted, may not be a ground for levy of penalty. Further, the assessee wrongly claimed exemption under section 11 on the basis of a legal advice and details furnished on record. Therefore, the assessee would not have any intention to conceal particulars of income from the Revenue Department. The assessee disclosed complete facts in the return of income as well as in the computation of income for receipt of the donations and incurring expenditure. The authorities below after granting deduction of the expenses claimed, made the small addition against the assessee considering the donations and corpus donations to be income under section 2(24). The assessee, therefore, disclosed complete facts before the authorities below and, therefore, could not be said to have concealed particulars of income. The small income was assessed against the assessee because no registration was granted under section 12A of the Act. Assessing Officer should have followed the rule of consistency and on the same set of facts should not levy penalty against the assessee in assessment years under appeals. It is well settled law that the Income Tax Authorities shall have to maintain the rule of consistency. The explanation of the assessee was bonafide that since it is a registered trust and applied for registration of trust before the Commissioner of Income Tax, Patiala, therefore, the assessee on legal advice has made the claim of exemption of income under section 11 of the Act, therefore, no penalty is leviable against the assessee. - Decided in favour of assessee.
|