2011 (4) TMI 1347 - AT - Income Tax

Summary

Issues Involved:
The only issue raised in this appeal is the deletion of penalty u/s 271(1)(c) of the IT Act amounting to Rs. 21,08,228/- levied by the AO for furnishing inaccurate particulars of income.

Issue 1: Deletion of Penalty u/s 271(1)(c) of the IT Act
The AO imposed a penalty of Rs. 21,08,228/- on the assessee for furnishing inaccurate particulars of income amounting to Rs. 59,05,401/- for A.Yr. 2004-05. The CIT(A) deleted the penalty citing that the appellant had furnished all necessary particulars and the concealment of income was not deliberate. The CIT(A) observed that the penalty could not be imposed solely based on diverse views on certain payments made during different financial years. The ITAT confirmed the CIT(A)'s decision to delete the penalty, stating that the assessee had adopted a plausible view based on divergent opinions and claimed exemption under section 43B of the IT Act in good faith. Therefore, the provision of section 271(1)(c) was deemed not applicable, and the appeal of the Revenue was dismissed.

Separate Judgement:
No separate judgment was delivered by the judges in this case.