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2017 (11) TMI 1213 - ITAT DELHIPenalty u/s 271(1)(c) - surrendered income - Held that:- AO made the addition merely on the ground that the surrender was not to his satisfaction rather proceeded to estimate the disallowance @ 0.25%. When the assessee company has produced account books before the AO during assessment proceedings, AO was required to compute the income on the basis of documentary evidence and not on the basis of estimation. But the AO proceeded to guesswork the additional income on the basis of some defects in the account books and on the ground that the income offered is not adequate. In the given circumstances, we are of the considered view that there is no question of furnishing of inaccurate particulars to attract the provisions contained u/s 271(1)(c) of the Act. - Decided in favour of assessee. Penalty u/s 271AAA - assessee company has surrendered income u/s 132 (4), paid taxes along with interest which the assessee company has disclosed in profit & loss account under the head ‘other income' - Held that:- AO has not put any specific query to the assessee to further specify the manner in which such income was derived and to substantiate the manner in which such income was derived. Furthermore AO has nowhere recorded any finding in the assessment order that it is undisclosed income of the assessee sufficient to attract the provisions contained u/s 271AAA. Coordinate Bench while dealing with the identical issue in case cited as Neerat Singal vs. ACIT – (2013 (6) TMI 762 - ITAT DELHI) also held that the AO was not justified in imposing penalty u/s 271AAA when authorized officer has not raised any query during course of recording of statement u/s 132 (4) about the manner in which the undisclosed income has been derived and about its substantiation. There is no illegality or perversity in the findings returned by ld. CIT (A) in deleting the penalty imposed u/s 271AAA - Decided in favour of assessee.
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