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Issues involved: Appeals against penalty u/s 271(1)(c) for assessment years 2003-04 to 2008-09.
Summary: The Appellate Tribunal ITAT Cochin heard six appeals by the revenue against a common order confirming penalties u/s 271(1)(c) for the mentioned assessment years. The appeals pertained to the same taxpayer and were disposed of together for convenience. The taxpayer, a partner in a firm, passed away in September 2009, leaving credits in bank accounts unexplained. The legal heirs failed to provide a satisfactory explanation for these credits, leading to the assessing officer imposing penalties for income concealment. The legal representative did not contest the addition, citing lack of knowledge about the funds' source due to ongoing disputes within the partnership firm. After considering both parties' arguments and the available evidence, the Tribunal emphasized that not all additions in assessment automatically warrant penalties. Given the taxpayer's death and the complexities surrounding the funds' origin, the legal heirs faced practical difficulties in explaining the bank account credits. Consequently, the Tribunal deemed it unjust to levy penalties in this case and upheld the Commissioner's decision to delete the penalties. Ultimately, all revenue appeals were dismissed, confirming the lower authority's decision.
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