2022 (6) TMI 1513 - AT - Income Tax

Penalty u/s 271(1)(c) - increase in gross profit - CIT(A) deleted penalty levy - HELD THAT - CIT(A) while deleting the penalty on the addition of increase in G.P. has given a finding that the addition on which the impugned penalty has been levied has been deleted in the appellate proceedings and, therefore, the penalty on such addition does not survive. Before us, no material has been placed by the Revenue to point-out any fallacy in the findings of the Ld. CIT(A) nor has Revenue placed any material to demonstrate that the addition on which the impugned penalty has been levied has been upheld by higher Judicial Forum. Appeal of the Revenue is dismissed.

Summary

The Revenue's appeal against the Order of the Ld. CIT(A)-35, New Delhi, dated 08.04.2019 related to the A.Y. 2009-2010. The assessee, an individual and proprietor of M/s. K.K. International, had filed a return of income for the A.Y. 2009-10 declaring income of Rs. 41,78,820/-. The assessment was framed under section 144(1) read with section 145(3) of the I.T. Act, 1961, resulting in a total income of Rs. 4,00,78,580/- with additions and disallowances. The AO levied a penalty of Rs. 1,22,02,328/- under section 271(1)(c) of the I.T. Act, 1961. The Ld. CIT(A) granted partial relief by deleting the penalty on certain additions but upheld the penalty on others. The Revenue appealed to the Tribunal, but the appeal was dismissed as no material was presented to challenge the findings of the Ld. CIT(A).