2012 (1) TMI 361 - AT - Income Tax

Summary

Issues involved: Both the appeals of the revenue are directed against two independent orders of CIT(A) deleting the addition made by the assessing officer and deletion of the penalty levied.

Quantum Appeal:
The appeal concerns the maintainability of the appeal filed by a partner of a partnership firm after the firm's appeal was dismissed by the Appellate Commissioner. The argument revolves around whether the partner's appeal is maintainable independently. The Commissioner of Income-tax(A) deleted the addition based on the grounds of advance-tax payment, while the assessing officer computed undisclosed income. The High Court directed the Appellate Commissioner to dispose of the appeal filed by the partner, indicating the appeal's validity. The Tribunal upheld the Commissioner's decision regarding the undisclosed income, considering advance-tax payment and disclosed income.

Penalty Appeal:
The penalty appeal questions the levy of penalty on the undisclosed income confirmed by the Commissioner of Income-tax(A). The Commissioner deleted the penalty citing no deliberate concealment of income, which was based on material found during a search operation. The Tribunal examined the provisions of section 158BFA(2) and noted the need to consider the Second Proviso to this section. Consequently, the Tribunal set aside the Commissioner's order and remitted the issue back for reconsideration in light of the Second Proviso.