×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
The above captioned appeal is filed at the instance of assessee pertaining to Assessment Year 2007-08 and is directed against the orders of Ld. Commissioner of Income Tax (Appeals)-I (in short ‘Ld.CIT(A)’], Bhopal dated 30.05.2017 which is arising out of the order u/s 271(1)(c) of the Income Tax Act 1961(In short the ‘Act’) dated 19.05.2014 framed by ITO-1(2), Bhopal.
2. The assessee has raised following grounds of appeal;
“1. That in the facts and circumstances of the case, the Ld. CIT(A) erred in confirming levy of penalty of Rs.5,00,000/- u/s 271(1)(c) of the Act.
2. That the order of penalty passed by the A.O and sustained by CIT(A) is bad in law and ought to be set aside.”
ADDITIONAL GROUNDS OF APPEAL
3. That the learned AO erred in issuance of notice us/ 271(1)(c) without there being any satisfaction of the AO as to on which limb penalty proceedings are initiated. Blanket penalty proceedings so initiated being illegal and wrong, the penalty require to be cancelled.
4. That the learned AO erred in imposing penalty of Rs.5,00,000/- by invoking both the limbs of the penalty i.e. (i) furnishing of inaccurate particulars and (ii) concealment of particulars of his income. The penalty so imposed by invoking both the limbs is illegal and wrong. The penalty order so passed being illegal and wrong, the same require to be annulled.
5. That the learned AO erred in passing penalty order u/s 271(1)(c) by solely relying on the order u/s 143(3). That penalty being a separate proceedings and its not that on every addition confirmed penalty will be imposed. The order of AO so passed and confirmed learned ) is illegal and wrong, the same require to be deleted”.
3. The sole issue raised in this appeal is against the confirmation of levy of penalty of Rs.5,00,000/- u/s 271(1)(c) of the Act.
4. Briefly stated facts as culled out from the records are that the assessee is an individual engaged in the business of wholesale and retail trading of plywood, door shutters, ceiling tiles and soft board etc. Return of income for the Assessment Year 2007-08 declaring income of Rs.5,27,681/- filed on 31.10.2018. A survey u/s 133A of the Act had taken place at the business premises of M/s. Aradhana Distributors where Shri Akhilesh Kumar Gupta was the proprietor on 13.9.2006 and 14.09.2006. During the course of survey excess stock of plywood worth Rs.15,15 430/- and excess cash of Rs.3,97,483/- was found and the appellant surrendered the same and advance taxes of Rs.5,95,000/- were also paid by the appellant. As the assessee retracted and did not accepted his declaration, the case taken for scru iny and notice u/s 143(2) was issued on 11.09.2008. The income of Rs.24,78,068/- assessed u/s 143(3) adding excess stock at Rs.15,15,430/- rent at Rs.1,25,632/-, stock difference at Rs.2,99,325 and expenses at Rs.10,000/-. Penalty u/s 271(1)(c) of the Act of Rs.5,00,000/- was levied for furnishing inaccurate particulars/concealed particulars of income. Aggrieved assessee preferred appeal before Ld. CIT(A) against the penalty levied u/s 271(1)(c) at Rs.5,00,000/- but could not succeed.