Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 1338 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Held that:- Penalty under section 271(1)(c) could be levied on both the limbs of said section. We find no merit in the plea of learned Departmental Representative for the Revenue in this regard, wherein the returned income was finally accepted by the CIT(A) / Tribunal and the protective addition made in the hands of assessee was deleted. Accordingly, we hold that penalty order passed in the case suffers from infirmity and the same is invalid in law. Accordingly, we direct the Assessing Officer to delete said penalty under section 271(1)(c) of the Act at ₹ 11,74,601/-. We have in the paras hereinabove have already held that levy of penalty by the Assessing Officer holding the assessee to have concealed income and furnished inaccurate particulars of income was invalid and bad in law and the penalty order passed by the Assessing Officer has been cancelled. Consequently, the enhancement made on such order passed by the Assessing Officer, which is held to be invalid, does not stand. Since the CIT(A) has based his calculation on the order of Assessing Officer holding that the penalty is to be calculated with regard to concealed income of ₹ 1.24 crores and not the additional income of ₹ 32,09,950/-, the CIT(A) observed that the Assessing Officer had mistakenly calculated the same with respect to income of ₹ 32,09,950/-. Accordingly, we delete the penalty levied by the CIT(A) at ₹ 45,43,069/-. The additional ground of appeal is thus, allowed.
|