2012 (11) TMI 1145 - AT - Income Tax

Summary

Issues involved: Appeals against deletion of penalties u/s 271AAA and 271(1)(d) of the Income Tax Act.

Penalty u/s 271AAA:
The taxpayer disclosed additional income during a search operation, but the assessing officer levied a penalty u/s 271AAA for not substantiating the manner in which the income was offered. The taxpayer contended that the income was from business and offered as per books of account. The Tribunal held that since the taxpayer substantiated the undisclosed income and had no other unaccounted source, the penalty was rightly deleted by the Commissioner of Income-tax(A).

Penalty u/s 271(1)(d):
The penalty was levied for allegedly concealing fringe benefit particulars. The taxpayer claimed exemption for certain expenses, which was rejected by the assessing officer. The Tribunal noted that the taxpayer had furnished all details and claimed non-taxability, which was not accepted. Citing the case of Commissioner of Income-tax vs Reliance Petroproducts, the Tribunal found that a mere claim of non-taxability does not amount to furnishing inaccurate particulars. Consequently, the penalty was rightly deleted by the Commissioner of Income-tax(A).

In conclusion, both appeals of the revenue were dismissed, affirming the decisions of the Commissioner of Income-tax(A) in deleting the penalties.