2021 (2) TMI 792 - AT - Income Tax

Penalty u/s 271(1)1(c) - addition of salary income - filling of revised return - HELD THAT - As assessee failed to explain the reason behind the revised return having reduced the salary income from than in original return and that too, after due verification thereof. This has formed the precise reason for the Assessing Officer as well as the CIT(A) to hold the same as an instance of furnishing of inaccurate particulars of income - We are in complete agreement with the CIT(A) s above extracted findings confirming impugned penalty. Assessee s substantive ground fails.

Summary

Issues:
Penalty under Section 271(1)(c) of the Income Tax Act, 1961 for AY.2016-17.

Analysis:
The appellant contested the penalty imposed under Section 271(1)(c) for inaccuracies in the revised return, reducing salary income and claiming incorrect deductions. The appellant argued that the revised return errors were inadvertent and supported by documentary evidence. However, the Assessing Officer (AO) found the revised return discrepancies deliberate, leading to inaccurate income particulars. The AO noted the deliberate reduction in claimed deductions and salary income, resulting in concealed income. The appellant's claims of inadvertent mistakes were rejected by the AO. The CIT(A) upheld the penalty, emphasizing the deliberate reduction in salary income without a valid explanation. The appellant's failure to justify the revised return discrepancies led to the confirmation of the penalty. The AO was directed to recompute the penalty on the concealed income, resulting in a penalty on the reduced amount. The penalty was upheld based on the deliberate reduction in salary income without a valid explanation, leading to the dismissal of the appeal.