2015 (9) TMI 849 - HC - Income Tax

Penalty u/s 271(1)(c) - ITAT deleted penalty - Held that - It is evident that the factum of deletion of addition in respect of non-deduction of tax by the assessee was not controverted by the revenue. The Tribunal has further found that the penalty had been levied on the amount which was reflected in the original return as income. That it was an undisputed fact that the assessee had declared this income in his original return of income, although it was a belated return. From the findings recorded by the Tribunal, it is evident that the Tribunal has found as a matter of fact that there was no concealment of particulars of income on the part of the respondent assessee and in fact, the Assessing Officer had proceeded on the basis of the return filed by the assessee and particulars furnished therein. Under the circumstances, in the absence of any concealment of the particulars of income or furnishing of inaccurate particulars of income on the part of the assessee, no infirmity can be found in the impugned order passed by the Tribunal in confirming the order passed by the Commissioner (Appeals) in deleting the penalty under section 271(1)(c) of the Act. - Decided in favour of assessee.

Summary

Issues:
Challenge to deletion of penalty under section 271(1)(c) of the Income Tax Act for assessment year 2006-07.

Analysis:
The appellant revenue challenged the order of the Income Tax Appellate Tribunal deleting the penalty of Rs. 2,81,24,572/- imposed under section 271(1)(c) of the Income Tax Act. The Assessing Officer initiated penalty proceedings based on various disallowances and additions made during the assessment for the year 2006-07. The Commissioner of Income Tax (Appeals) allowed the appeal and deleted the penalty, a decision upheld by the Tribunal.

The appellant contended that the penalty was justified as the assessee had shown additional income after it was detected during a survey action under section 133A of the Act. It was argued that the assessee filed the return beyond the prescribed period and failed to comply with filing Form 15I and 15J, thereby furnishing inaccurate particulars of income. The appellant urged the court to consider the appeal and formulate a suitable question for consideration.

Upon review, the court examined the submissions, the impugned orders, and the penalty imposed under section 271(1)(c) of the Act. The Tribunal's findings revealed that the addition in question was not disputed by the revenue, and the penalty was levied on income already declared in the original return, albeit a belated one. The court noted that there was no concealment or furnishing of inaccurate particulars of income by the assessee. The Assessing Officer had proceeded based on the return and particulars provided by the assessee. Therefore, the Tribunal's decision to confirm the deletion of penalty by the Commissioner (Appeals) was upheld.

In conclusion, the court found no infirmity in the Tribunal's order, as there was no concealment or inaccuracies in the income particulars furnished by the assessee. The decision did not give rise to any substantial question of law warranting interference. Consequently, the appeal was dismissed.