2012 (5) TMI 642 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of penalty u/s 271(1)(c) of the Income Tax Act.

Summary:
The Revenue appealed against the deletion of a penalty of Rs. 10,72,110 imposed by the Assessing Officer u/s 271(1)(c) of the Act. The assessee had accepted an addition of Rs. 31,54,191 in the assessment, and penalty proceedings were initiated. The penalty was levied, but the CIT(A) deleted it, stating that the provision for penalty was introduced retrospectively after the return was filed. The Revenue argued that the assessee had knowledge of the amendment but did not revise the return, showing malafide intent. The assessee contended that the deduction claimed was permissible at the time of filing the return, and there was no obligation to file a revised return. The Tribunal held that the assessee was entitled to deduct the amount in question before the amendment and that there was no concealment or furnishing of inaccurate particulars in the original return. Therefore, the penalty deletion was upheld, and the appeal was dismissed.