9911796707
TMI Blog2015 (8) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... of his income. Decision in the case of Careers Education & Infotech (P) Ltd.'s case (2011 (3) TMI 602 - PUNJAB AND HARYANA HIGH COURT)is squarely applicable to the facts of present case. Considering the entire facts and circumstances of the present case, hold that it is not a fit case for levy of penalty u/s 271(1)(c) - Decided in favour of assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... e ignoring the loss for which assesse has no objection subject to no penalty & penal action." 4. The AO, agreeing with the above plea of the assesse ,ignored the loss of ₹ 5,37,150/- but rejected the conditional offer of no levy of penalty and initiated penalty proceedings u/s 271(1)(c) on the addition made. 5. The AO in penalty proceedings held that the assesse had by agreeing to ignore the loss, furnished inaccurate particulars of income and had given no justifiable cause for the same also. He therefore held the assesse liable to pay penalty u/s 271(1)(c) and imposed penalty of ₹ 1,80,805/-, on the addition of ₹ 5,37,150/- @ 100% of tax sought to be evaded ,vide his order dt. 27/03/2012. 6. The CIT(A) confirmed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heavy debt and is not involved in active business activities. He reiterated that the assesse had voluntarily surrendered his losses and given due explanation for the same also. He further submitted that in the preceding year i.e.; AY 2006-07 in similar circumstances loss had been ignored and penalty proceeding initiated thereon had been dropped. Thus , as per the AR ,there was no case for levy of penalty at all u/s 271(1)(c) of the Act. 9. I have heard both the parties and perused the orders of the authorities below and the documents placed on record. 10. I find that the AO has recorded a finding of fact in his assessment order that during the period when assessment was being framed on the assessee, the assessee was under the burden of he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot actually made any losses during the year. In view of the above facts and circumstances, I have no hesitation to hold that the assesse made the surrender voluntarily in peculiar circumstances of the case. Assessing officer himself accepted it and assessed the income on exactly the same amount. There being no adverse material available on record or any reliance thereon, the observations of AO and CIT(A) about concealment of income or furnishing of inaccurate particulars of income are not borne out from record. 11. I agree with the CIT(A) that mere agreement cannot be the basis for non- levy of penalty. I also agree with the CIT(A) that an unsubstantiated explanation attracts penalty. But, I find , that the CIT(A) has failed to appreciate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... higher amount in the case of J.B. Exports. Although, the Tribunal rejected the explanation for the purpose of assessment of goods, it considered it as a good ground for cancellation of penalty, when the explanation on the differential amount was given by the assessee that the entries were made in the account and the Accountant had not made the correct entry. In a recent decision of the Hon'ble Supreme Court in Civil Appeal No. 9772 of 2013, dated 30.10.2013 (Mak Data P. Ltd., v. Commissioner of Income Tax-II), the Hon'ble Supreme Court while considering the Explanation to Section 271(1), held that the question would be whether the assessee had offered an explanation for concealment of particulars of income or furnishing inaccurate ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
