2013 (12) TMI 1658 - AT - Income Tax

Summary

Issues involved: Appeal against penalty u/s 271(1)(c) of the Income Tax Act, 1961 for non-reckoning of loss on sale of fixed assets in income computation.

Summary:
1. The appellant contested a penalty of Rs. 48,043/- imposed u/s 271(1)(c) of the Income Tax Act, 1961, confirmed by the Commissioner of Income Tax (Appeals), Kolkata, due to non-inclusion of a loss on sale of fixed assets in the income computation.

2. The Assessing Officer added the omitted amount to the assessment, initiating penalty proceedings. The appellant claimed it was a technical error, not intentional concealment. Despite explanations, the penalty was levied, upheld by the CIT(Appeals) citing ignorance of law as no excuse.

3. The appellant argued before the ITAT that the mistake was unintentional and not tantamount to concealment. The ITAT noted the Assessing Officer's acknowledgment of the error being inadvertent, especially in the first year of e-filing. Citing a precedent, the ITAT ruled the penalty unjustified as no inaccurate particulars were furnished.

4. The ITAT concluded that the penalty u/s 271(1)(c) was unwarranted, quashing the penalty and allowing the appellant's appeal.

Judgment: The ITAT Kolkata allowed the appeal, quashing the penalty imposed u/s 271(1)(c) of the Income Tax Act, 1961, due to the inadvertent error in income computation.