9911796707
|
Home
Issues involved: Appeal against penalty u/s 271(1)(c) of the Income-tax Act, 1961.
Summary: The appellant challenged the penalty of Rs. 3,73,760 levied u/s 271(1)(c) by the AO. The penalty was imposed for three additions: excess payment of purchases to a sister concern, disallowance of deduction u/s 80IB, and disallowance u/s 40A(2). However, the Tribunal found that the quantum additions were deleted, and thus, the penalty could not be sustained. The Tribunal emphasized that if the quantum addition does not survive, the levy of penalty is not applicable. Citing precedents, the Tribunal highlighted that penalty cannot be imposed if the impugned amount is disclosed in the return of income. Therefore, the penalty levied by the AO was canceled, and the appeal by the assessee was allowed. In conclusion, the Tribunal ruled in favor of the assessee, canceling the penalty imposed u/s 271(1)(c) due to the deletion of quantum additions. The decision was based on the principle that if the income is disclosed in the return, penalty for concealment is not applicable.
|
