2022 (7) TMI 626

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... (c) of the Income-tax Act, 1961 ("the Act") in respect of disallowance of Rs. 10,67,160 under section 40(a)(ia) of the Act on account of non-deduction of tax at source under sectionl94C of the Act from payment made for supply of water allegedly holding that the appellant furnished inaccurate particulars of income. 2. That the CIT(A) erred on facts and in law in sustaining the penalty levied under section 271(l)(c) of the Act in respect of the aforesaid disallowance under section 40(a)(ia) of the Act of Rs. 10,67,160 allegedly on the basis that the quantum appeal on the said issue has been decided against the appellant, not appreciating that considering the merits of the matter the said disallowance was otherwise not warranted. 3. That .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... /05/2020. The Ld. Counsel for the assessee further submitted that, the assessee has already paid the tax along with the applicable interest the assessee has not committed any concealment to initiate the penalty. 4. Per contra, the Ld. DR has relied on the order of the CIT(A). 5. We have heard the parties considered the material on record and gave our thoughtful consideration. From the record it is emerges that the aggregate expense of the assessee at Rs. 10,67,167/- was incurred for supply/purchase of water. The tax auditor did not report any violation in that regard in the audit report issued u/s 44AB of the Act. Accordingly, no disallowance was made qua the said payment u/s 40a(ia) of the Act in the return of income of the assessee. The .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 15,054/- were on account of small/penny donations. Therefore, could not produce the receipt for the same and submitted that, penalty could not be levied merely because of the receipt on the said donations could not be located and furnished. We do agree with the contentions of the Ld. Counsel for the assessee. 7. By looking into the facts and circumstances and the quantum involved in the appeal, we are of the considered opinion that, the assessee has not made any concealment of income to initiate the penalty proceedings. Therefore, we inclined to delete the penalty. 8. Accordingly, we allow the grounds of Appeal by deleting penalty imposed by the A.O which has been confirmed by the CIT(A). 9. In the result, the appeal filed by the assess .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X