9911796707
|
Home
Issues:
Appeal against CIT(A) order cancelling penalty under s. 271(1)(c) of the IT Act for the asst. yr. 1991-92. Analysis: 1. The appeal was against the cancellation of a penalty imposed under s. 271(1)(c) of the IT Act for the assessment year 1991-92. The penalty was imposed after search and seizure operations, during which the assessee surrendered an amount of Rs. 17,03,119. The AO considered this surrendered amount as concealed income and imposed a penalty of Rs. 9,28,658. 2. The CIT(A) observed that the surrendered amount was disclosed as income from speculation business in the statement under s. 132(4), but in the return, it was categorized under "income from other sources." The CIT(A) accepted the surrendered amount as the assessee's income for the year and noted that the difference in the returned and assessed income was due to an increase in share income, which was irrelevant for penalty imposition. 3. The Departmental Representative argued that the assessee did not specify the manner in which the surrendered income was derived, thus not meeting the condition under Expln. 5 to s. 271(1)(c). The counsel for the assessee disagreed, relying on the CIT(A)'s order. The tribunal found that the surrendered income was clearly disclosed during the search, and the authorized officer should have inquired about how it was earned. 4. After careful consideration, the tribunal concluded that the Department's grounds for imposing the penalty were untenable in law and fact. They upheld the CIT(A)'s decision to cancel the penalty, stating that there was no infirmity in the order. Consequently, the appeal against the penalty imposition was dismissed.
|
