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2022 (6) TMI 646 - ITAT DELHIPenalty u/s 271(1)(c) - “deferred revenue expenditure did not pertain to the assessment year under consideration, it was not allowable and accordingly he disallowed the same - HELD THAT:- A perusal of the assessment order reveals that while making the addition of Rs.26,080/- on account of deferred revenue expenditure, no satisfaction has been recorded by the A.O. as to whether it is a case of concealment of particulars of income or furnishing of inaccurate particulars of income. We find force in the arguments of the Learned A.R. and the decisions relied on by the Learned A.R. On this score itself similar view is taken by Hon’ble Karnataka High Court in the case of CIT vs. M/s. SSAs Emerald Meadows [2015 (11) TMI 1620 - KARNATAKA HIGH COURT] This decision is confirmed by the Hon’ble Supreme Court reported [2016 (8) TMI 1145 - SC ORDER] - In this view of the matter, the orders of the authorities below are set aside and penalty is cancelled. Ground of appeal No.1 of the assessee is allowed. Power of CIT-A to Levy of penalty under section 271AAA - CIT-A deleted the penalty levied under section 271(1)(c) by holding that A.O. had erroneously applied the provisions of Section 271(1)(c) however directed the A.O. to initiate penalty proceedings under section 271AAA - HELD THAT:- We find an identical issue arose before the Hon’ble Kerala High Court in the case of CIT vs., Eminent Enterprises [1992 (6) TMI 20 - KERALA HIGH COURT] as held that it is not open to the First Appellate Authority i.e., Ld. CIT(A) to set aside the order of the A.O. and order a remand or to give any directions. Thus we are of the view that the Ld. CIT(A) was not justified in giving direction to the A.O. to levy penalty under section 271AAA of the I.T. Act, 1961. We, therefore, set aside the order of the Ld. CIT(A) on this ground. Accordingly, ground of appeal No.2 of the assessee is allowed.
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