Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (10) TMI 610 - ITAT DELHIPenalty u/s 271(1)(c) - whether the assessee-company has neither concealed the particulars nor furnished inaccurate particulars of Income? - HELD THAT:- As in the instant case the assessee-company is following Percentage Completion Method and furnished the profit at 27.2% of the completed construction area, which has been accepted by the A.O. and made the addition in the impugned assessment year, on which, penalty proceedings were initiated. In this connection in the preceding A.Y. 2014-15 on similar set of facts, the A.O. has not levied any penalty, thereby, the A.O. satisfied that there was no concealment of the income on the part of the assessee-company. However, for the impugned A.Y. 2015- 16, when the assessee carried the matter in appeal before the CIT(A), CIT(A) simply confirmed the penalty levied by the A.O. under section 271(1)(c) without going into the merits of the case. It is a fact that in the assessment order the A.O. has accepted the profit arises out of Percentage Completion Method followed by the assessee at 27.2% and accepted the estimated profit on the said percentage at Rs.35 lakhs and made the impugned addition, on which, penalty proceedings were initiated by the A.O. Sr. D.R. did not controvert the submissions of the assessee that under identical facts and circumstances, the A.O. himself has dropped penalty proceedings u/s 271 (1)(c) of the I.T. Act, 1961 for the immediately preceding A.Y. 2014-15. Thus while considering the issue of imposing penalty under section 271(1)(c) of the Act, the A.O. cannot blow hot and cold in different assessment years on identical and similar facts and circumstances. Thus, penalty imposed by the A.O. and confirmed by the Ld. CIT(A) does not stand sustainable on this count. I, therefore, find force in the arguments of the Learned Counsel for the Assessee and in absence of any contrary material brought on record by the Ld. D.R to the effect that assessee concealed the particulars of income or furnished inaccurate particulars of income, set aside the orders of the authorities below and delete the penalty. Accordingly, appeal of the assessee is allowed.
|