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2024 (6) TMI 1019 - AT - Income TaxIssues Involved: A batch of appeals filed against the order of the ld. Commissioner of Income Tax (Appeals) Jammu related to penalty u/s 271(1)(c) of the Income Tax Act 1961 for A.Ys. 2001-02 & 2002-03. Issue 1: Penalty u/s 271(1)(c) of the Act Summary: The appeals by different assessees were against the penalty imposed u/s 271(1)(c) of the Income Tax Act. The impugned orders originated from the ld. Asstt. Commissioner of Income Tax, Circle-V, Amritsar, and were related to A.Ys. 2001-02 & 2002-03. The primary contention was the levy of penalty u/s 271(1)(c) based on the claim of standard deduction and inclusion of certain components in the income. The appeals were consolidated for convenience, with ITA No. 15/Asr/2004 as the lead case. Issue 2: Claim of Standard Deduction Summary: The assessee, an employee who received salary and ex-gratia post VRS, declared the income u/s 17(1) of the Act. The dispute arose regarding the eligibility to claim standard deduction u/s 16(1) of the Act. The revenue contended that if the total income exceeded a specified limit, standard deduction was not permissible. The penalty was initiated and subsequently levied u/s 271(1)(c) for furnishing inaccurate particulars of income. However, the ITAT Amritsar Bench had previously ruled in favor of the assessee in similar cases, leading to the cancellation of the penalty in this instance as well. Issue 3: Judicial Precedents Summary: The ld. AR cited previous rulings by the ITAT Amritsar Bench that favored the assessee's position on the standard deduction issue. The decisions highlighted the absence of mala fide intent on the part of the assessee and the disclosure of all relevant facts. The ITAT relied on these precedents to set aside the penalty imposed by the ld. AO. The decision was based on the principle of consistency with earlier judgments, leading to the allowance of the appeals. Conclusion: The ITAT Amritsar Bench, considering the precedents and facts of the case, set aside the penalty imposed u/s 271(1)(c) for all the appeals, including ITA No. 15/Asr/2004, 16/Asr/2004, 239/Asr/2004, and 529/Asr/2004. The orders were pronounced in favor of the appellants on 11.01.2024.
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