2010 (11) TMI 24

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.... the Income Tax Act, 1961 (for short, "the Act") against the order of the Income Tax Appellate Tribunal, Chandigarh dated 28.10.2009 in I.T.A. No.908/ChD/2009 for the assessment year 2006-07 proposing to raise following substantial question of law:- "Whether on the facts and in the circumstances of the case, the Hon'ble ITAT is right in law in upholding the order of the CIT(A)-II, Ludhiana dated ....

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....essee's plea was turned down on merits, was not by itself enough to attract penalty. The Tribunal upheld the view of the CIT(A) with the following observations:- "9. Penalty for concealment u/s 271(1)(c) of the Act is leviable in all such cases where the assessee had concealed his income or furnished inaccurate particulars of income. In the facts of the present appeal before us, the basis for lev....

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....king the investment within the prescribed time can be the basis for disallowing the claim of deduction u/s 54EC of the Act but cannot be the basis for levy of penalty u/s 271(1)(c) of the Act. The assessee having fully disclosed the material facts for the computation of income and the explanation of the assessee being found not false, cannot make assessee liable for the levy of penalty. We find me....