2011 (4) TMI 1406 - AT - Income Tax

Summary

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

Summary:

Issue 1: Background and Penalty Imposition
The appeal arose from the deletion of a penalty of Rs. 2,48,060/- levied u/s.271(1)(c) of the I.T.Act based on a search conducted under section 132 of the Act, leading to additional income disclosure by the assessee.

Issue 2: Arguments Before CIT(Appeals)
The assessee argued before the CIT(Appeals) that the penalty was unjustified as the income was assessed under section 115JB, and the disclosed income was in compliance with the notice u/s.153A. The CIT(Appeals) deleted the penalty based on precedent and the accepted assessed income.

Issue 3: Judicial Precedents
The Revenue relied on the Madras High Court decision emphasizing non-voluntary disclosure, while the assessee cited the Delhi High Court ruling stating that penalty cannot be imposed based on additions made under regular provisions when income is assessed under section 115JB.

Issue 4: ITAT Mumbai Decision
Referring to an ITAT Mumbai decision, it was concluded that no penalty could be imposed when the total income is determined under section 115JA, as concealment of income plays no role in such cases.

Conclusion
Considering the case laws and factual details, the Tribunal affirmed the CIT(Appeals) findings, rejecting the Revenue's appeal and dismissing the penalty imposition. The net taxable income was determined to be NIL, aligning with the assessment under section 115JA.