2002 (8) TMI 251 - AT - Income Tax

Summary

Issues:
Penalty under sections 271(1)(c) & 271(1)(b) of the IT Act for concealment of income and non-payment of advance taxes.

Analysis:
The appeals involved a common ground of penalty under sections 271(1)(c) & 271(1)(b) of the IT Act. The assessees initially filed returns declaring a loss, later filed revised returns disclosing income under the Amnesty Scheme. The Assessing Officer (AO) imposed penalties for concealment of income and failure to pay advance taxes. The CIT(A) upheld the AO's decision, leading the assessees to appeal. The assessees argued that they complied with the Amnesty Scheme requirements, made full disclosures, and paid taxes promptly. They contended that there was no evidence of concealment, and the revised returns were filed voluntarily. They cited a similar case where the High Court deleted the penalty under similar circumstances.

The Tribunal considered the facts and observed that the assessees filed revised returns seeking Amnesty Scheme benefits after a search at M/s Shroff's premises. The AO rejected the Amnesty Scheme benefit, alleging non-voluntary filing, and imposed penalties. Referring to the precedent where penalties were deleted, the Tribunal concluded that the penalties should be removed in this case as well. It noted that there was no evidence of incomplete or false disclosures, and no incriminating findings during the search. The Tribunal disagreed with the CIT(A)'s decision to impose penalties and set aside the order. Consequently, the Tribunal annulled the penalty orders, allowing the appeals.

In summary, the Tribunal found that the assessees' revised returns under the Amnesty Scheme were valid, made voluntarily, and in compliance with the law. The Tribunal emphasized that there was no evidence of concealment or false disclosures, leading to the deletion of penalties imposed by the AO and upheld by the CIT(A). The decision was based on the principle of allowing Amnesty Scheme benefits in cases where disclosures were made in good faith, resulting in the penalties being set aside.