In this case assessee furnished all the relevant details about the donations received by the trust. However, offered for taxation to the extent details were not available. The honb. Court observed that the assessee had neither concealed the income nor furnished inaccurate particulars. Thus the penalty can not be levied.
- Assessee a Registered Trust u/s 12AA
- Income declared NIL in the return of income
- AO observed that the amount received as voluntary donations by way of cash not disclosed
- Assessed as undisclosed income of the trust and initiated penalty u/s 271(1)(c)
- CIT (A) confirmed the penalty
- Tribunal reversed the order and passed in favour of the assessee deleting the penalty u/s 271(1)(c).
In the present case, the assessee had explained before the Assessing Officer that the amounts received by it were voluntary donation and certain details were not available. Therefore, the extent of details not available were worked out by the assessee and offered for taxation. It was found that by explaining all the reasons, the assessee had discharged burden cast upon it. Thereafter, it was the duty of the AO to disprove that the explanation given by the assessee was neither correct nor bonafide. Therefore, the CIT(A) was not correct in upholding the penalty order passed by the AO without considering the explanation given by the assessee.
Cases Referred to
CIT vs. Chennupati Tyre & Rubber Products  APHC
Mak Data P. Ltd., vs. Commissioner of Income Tax-II Civil Appeal No.9772 of 2013, dated 30.10.2013
National Textiles vs. CIT249 ITR 125
CIT vs. Balraj Sahani119 ITR 36