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2016 (1) TMI 404 - AT - Income TaxPenalty u/s 271(1)(c) - undisclosed sales/purchase figures - Held that:- The only facts that the assessee could not produce all sales/purchase bills, does not mean that the detail furnished is in accurate in any manner. These facts were also told to CIT, Appeal during the penalty proceedings. In spite of not having any shortcomings/discrepancies and to end the proceeding amicably, she had offered to surrender a sum of ₹ 5,00,000/- on agreed basis.as additional income to buy peace with the department and the Id., A.O. accepted the said offer and made addition of ₹ 5,00,000/- only. However the penalty proceeding was still initiated which is uncalled for as no specific defect was found while making the addition of ₹ 5,00,000/- This figure was based on the voluntary amount offerto tax to end the prolonged litigation by the assessee and the A.O. has only reproduced the submission of surrender in the penalty order. Hence the penalty imposed on account of concealment of Income and furnishing inaccurate particular u/s 271(1)© is not justified and needs to be deleted. Levy of penalty in this case is not justified. Accordingly, set aside the orders of the authorities below and delete the levy of penalty in dispute as section 271(1)(c) postulates imposition of penalty for furnishing of inaccurate particulars and concealment of income. On the facts and circumstances of this case the assessee’s conduct cannot be said to be contumacious so as to warrant levy of penalty. - Decided in favour of assessee
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