9911796707
|
Home
Issues involved: Validity of penalty imposed u/s 271(1)(c) of the Income Tax Act for assessment year 2004-05.
Summary: The appeal by the Revenue challenged the penalty imposed u/s 271(1)(c) of the Act for the assessment year 2004-05. The main issue was the validity of the penalty. The Departmental Representative argued that the assessee had understated income by not disclosing turnover correctly, leading to the penalty. The assessing officer included the entire additional turnover as income, which was confirmed in appeal. The assessee contended that it had discovered the omitted turnover by inadvertence and filed a revised return offering 1% of the additional turnover as income. The assessing officer's decision to tax the entire additional turnover was disputed. The Tribunal found that the assessee voluntarily disclosed the additional turnover before assessment completion, and the penalty under u/s 271(1)(c) was not justified. The Tribunal upheld the CIT(A)'s decision to delete the penalty, emphasizing that the penalty and assessment proceedings are distinct. Ultimately, the appeal of the Revenue was dismissed, confirming the decision to delete the penalty imposed under u/s 271(1)(c) for the assessment year 2004-05.
|
