Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (8) TMI 466 - AT - Income TaxPenalty u/s. 271(1)(c) - assessee voluntarily admitted income out of his agricultural income - AO rejected the assessee’s agricultural income claim to the extent of ₹ 10 lakhs for want of details/evidences and completed the assessment, which the assessee itself accepted by its letter - HELD THAT:- Assessee has furnished confirmation letters from the purchasers of Casurina and necessary certificates from the Village Administrative Officer to prove that the assessee is owner of the land and he has grown a Casurina Plant etc. The assessee has also explained that the transactions were undertaken through his bank accounts and receipts are through banking channels. Thus, the assessee has clearly explained that he was in receipt of the impugned sum from the sale of Casurina plant. It is also seen from the orders of the lower authorities that the AO issued summons to the purchaser, Shri. Chandrakesavan and levied penalty for non-compliance of the purchaser and compelled the assessee to appear u/s. 131. The assessee agreed to admit additional income on a condition that penalty proceedings should not be initiated. However, when the AO has initiated penalty proceedings and sought for explanation, the assessee explained his transactions and brought to the notice of the AO that the impugned transactions were undertaken through banking channel. Therefore, the assessee prima facie, placed relevant materials and explained the transaction. Penalty proceedings being a separate proceeding, if at all, the AO intends to levy penalty, then the AO is bound to record the satisfaction that the explanation offered by the assessee is false. In this case, since the AO has not recorded such findings, we are of the opinion that the penalty levied is un-sustainable and hence it is deleted. The corresponding grounds of the assessee are allowed.
|