Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 327 - AT - Income TaxRevision u/s 263 - as per CIT AO has dropped the penalty proceedings without proper verification - Assessee not produce the original challans in respect of payment of VAT and CST - as during the penalty proceedings, the assessee had clearly explained to the AO that the addition was agreed only to avoid unwarranted litigation - HELD THAT:- As during the assessment proceedings on issuance of a notice u/s 133(6) to the CTO Bodhan, the CTO had stated that there was a scam in their office due to which the records were not traceable and sought further time to verify the challans forwarded by the ITO. Thus, there is no adverse comment by the CTO or even any implication that challan submitted by assessee may be false or bogus or fake .Assessee had agreed for the disallowance. During the penalty proceedings, assessee had given its explanation which has been accepted by the AO. Since AO has accepted the contentions of the assessee which have not been proved to be incorrect, the said dropping of penalty proceedings by the AO cannot be said to be erroneous. Where the assessee’s explanation has been found to be satisfactory by the AO, and there is no adverse finding by the concerned authorities, then the view taken by the AO is one of the possible views and cannot be said to be erroneous. Since the order of CIT does not satisfy the twin conditions of the order being erroneous and prejudicial to the interest of revenue, we are of the opinion that the order u/s 263 of the Act is not sustainable. - Decided in favour of assessee.
|