2022 (12) TMI 680 - AT - Income Tax

Penalty u/s 271(1)(c) - assessee failed to produce clinching evidence to justify claim of various expenditure - HELD THAT - As observed, the assessee contested the additions/disallowance made by the Assessing Officer by filing an appeal before Commissioner (Appeals). However, the appeal was ultimately withdrawn. Essentially, assessee accepted the additions / disallowances made by the AO. Neither before AO nor before Commissioner (Appeals) the assessee was able to furnish any reasonable explanation to demonstrate that there is no deliberate attempt to either conceal the income or furnish inaccurate particulars of income. The aforesaid factual position remains unaltered before us. Keeping in view the concurrent finding of the Departmental Authorities in the assessment and penalty orders, which the assessee has failed to rebut by leading proper evidence before us, we are inclined to uphold the decision of learned Commissioner (Appeals). Grounds raised are dismissed.

Summary

Issues:
Appeal against penalty under section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2011-12.

Analysis:
The appeal was filed by the assessee against the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2011-12. Despite multiple opportunities, the assessee did not appear for the hearing, indicating negligence and lack of interest. The Tribunal decided to proceed ex parte based on the submissions of the Departmental Representative and the available record.

For the assessment year in question, the assessee, a corporate entity in the pharmaceutical business, filed a return declaring a loss. During assessment, certain expenses were disallowed by the Assessing Officer, leading to a reduced loss figure. The Assessing Officer initiated penalty proceedings under section 271(1)(c) alleging concealment of income and furnishing inaccurate particulars. The penalty was imposed and later confirmed by the Commissioner (Appeals).

The Tribunal noted that the assessee failed to provide sufficient evidence to justify the claimed expenditures before the Assessing Officer. The assessee contested the additions/disallowances but eventually withdrew the appeal, essentially accepting the adjustments made. The Tribunal found that the assessee did not provide a reasonable explanation to show that there was no deliberate attempt to conceal income or furnish inaccurate particulars. As the assessee failed to rebut the findings of the Departmental Authorities, the Tribunal upheld the decision of the Commissioner (Appeals) to impose the penalty.

Ultimately, the Tribunal dismissed the appeal, upholding the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 for the assessment year 2011-12. The decision was pronounced in open court on 16th November 2022.