Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 572 - AT - Income TaxLevying penalty under section 271(1)(c) - Assessing Officer held that the assessee had routed her undisclosed income in the garb of scrap sales and had also made incorrect claim of deduction in respect of the amount of alleged scrap sales - claim of the assessee for deduction under section 80-IC denied - Held that:- The assessee submitted supportive bills and vouchers to justify the receipt of amount from sale of scrap before the Commissioner of Income-tax (Appeals) although the claim of the assessee for deduction under section 80-IC of the Act has been declined by the Revenue authority but rejection of the claim does not automatically attract penalty. Therefore, we reach to a logical conclusion that the Assessing Officer levied penalty in a hasty manner without assigning any justified and reasonable cause which was upheld by the Commissioner of Income-tax (Appeals) in a mechanical manner without going into the facts and circumstances of the case and ignoring this important fact that the assessee submitted details of ledger account, bills and vouchers during quantum appellate proceedings which cannot be ignored. Therefore, conclusion of the Assessing Officer that the assessee routed her own money earned from undisclosed sources in the garb of sale of scrap for levy of penalty under section 271(1)(c) is not sustainable. Finally, we hold that the penalty was imposed on the assessee without any justified reason and the same is not sustainable in view of our foregoing discussion and, therefore we direct the Assessing Officer to delete the penalty - Decided in favour of assessee.
|