2024 (11) TMI 27 - AT - Income Tax

Penalty u/s 271(1)(c) - addition of sale consideration for want of vouchers - CIT(A) confirmed the addition partly for want of vouchers - AR argued that no penalty is maintainable for non-furnishing the details as the assessee truly disclosed the transaction of the sale consideration and disclosed long term capital gains - HELD THAT - CIT(A) on examination of the same, restricted the addition to the extent above which clearly establishes that the assessee succeeded in part before the ld. CIT(A) by producing relevant evidence in support of claim of expenditure. On perusal of the penalty order, the AO proceeded to impose penalty only on the ground for non-submission of supporting vouchers for expenditure. As discussed above, CAFCO SYNDICATE SHIPPING CO. 2007 (7) TMI 35 - HIGH COURT, MADRAS held that penalty is not liable for non-submission of the vouchers. Respectfully following the same, we hold that no penalty could be imposed for non-furnishing evidence as it does not amount to concealment of income. Thus, the penalty imposed by the AO and confirmed by the ld. CIT(A) is liable to be quashed. Therefore, the penalty levied by the AO is deleted. The grounds raised by the assessee allowed.

Summary

The appeal was filed against an order dated 22.05.2024 for the assessment year 2010-11. The delay of 22 days in filing the appeal was condoned. The penalty imposed for concealment of income was quashed as non-furnishing of vouchers does not amount to concealment of income. The appeal filed by the assessee was allowed.