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Issues involved: Appeal against penalty imposed u/s 271(1)(c) of the IT Act, 1961 for furnishing inaccurate particulars of income leading to concealment of income.
Summary: 1. Background: The assessee received interest on enhanced compensation due to land acquisition. The assessment for the relevant year was completed against the returned income. 2. Appeal to CIT(A): The assessee appealed to the Commissioner of Income-tax (Appeals) against the assessment order, which was dismissed, confirming the additions made. 3. Penalty Proceedings: Penalty proceedings were initiated u/s 271(1)(c) of the Act, and a penalty was imposed for furnishing inaccurate particulars of income. 4. Appeal to CIT(A) Panchkula: The assessee appealed to the CIT(A), Panchkula, who held that interest on enhanced compensation is taxable on accrual basis, leading to the cancellation of the penalty order. 5. Tribunal's Decision: The Revenue appealed to the Tribunal, which dismissed the appeal based on the decision of a Special Bench regarding the taxability of interest on enhanced compensation on an accrual basis. 6. Substantial Questions of Law: The Revenue challenged the Tribunal's order, raising questions regarding the bona fide view of the assessee, contumacious intent for penalty levy, and contravention of judicial pronouncements. 7. Court's Decision: The Court referred to previous judgments and held that interest on enhanced compensation does not accrue until finally decided, and the claim made by the assessee was not concealment of income, dismissing the appeal as without merit.
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