Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 495 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - income/profits from sale of flats in Wing A and C of project ‘Meghsparsha’ developed by the assessee - Held that:- The Hon'ble Supreme Court of India in the case of Commissioner of Income Tax and Another Vs. Anwar Ali [ 1970 (4) TMI 1 - SUPREME Court ] has observed that the findings in the assessment proceedings may constitute good evidence in the penalty proceedings but it does not follow that penalty for concealment u/s. 271(1)(c) is mandatory whenever a addition or disallowance is made. Penalty u/s. 271(1)(c) is to be imposed where the assessee has concealed the particulars of income or furnished inaccurate particulars. For levy of penalty one of the important factors to be considered is the bonafide of assessee. In the present case we find that the assessee had disclosed the income/profits from sale of flats in Wing A and C in the subsequent assessment year. The assessee had filed return of income for assessment year 2006-07 declaring income from sale of flats in Wing A and C almost one year prior to the completion of assessment for assessment year 2005-06. Thus, there was no intention on the part of the assessee to withhold such income and not to pay tax thereon, therefore bonafide of assessee is proved. In such circumstances we are of the considered view that no penalty u/s. 271(1)(c) is leviable. Accordingly, the impugned order is set aside - Decided in favour of assessee
|