2012 (9) TMI 1016 - AT - Income Tax

Summary

Issues involved: Appeal against penalty u/s 271(1)(c) for assessment years 2007-08 and 2008-09.

Assessment Year 2007-08:
The assessee filed returns showing income but later disclosed additional income. AO levied penalty for concealment. CIT(A) upheld penalty citing non-disclosure during search. Assessee argued for penalty deletion based on similar case precedent. Tribunal deleted penalty based on precedent where disclosure was made during search proceedings.

Assessment Year 2008-09:
Similar to 2007-08, the assessee disclosed additional income post initial return filing. AO imposed penalty for concealment. CIT(A) upheld penalty. Assessee cited precedent for penalty deletion. Tribunal deleted penalty based on precedent where disclosure was made during search proceedings.

The Tribunal allowed both appeals in favor of the assessee, deleting the penalties imposed u/s 271(1)(c) for both assessment years based on the precedent set in a similar case.