ITAT deleted penalty as assessee had not given inaccurate particulars of income
ITAT deleted penalty as assessee had not given inaccurate particulars of income
Assessee declared total income at Rs. 33,86,260. AO u/s 144 (of Income Tax Act, 1961)/148 determined total income at Rs 1,29,63,216 by making various additions. After a round of litigation through CIT(A) and to the Tribnal, AO passed order as per Tribunal's directions, and again made additions, and imposed penalty of Rs.51,49,038. CIT(A) confirmed penalty. ITAT deleted the penalty and held that the assessee had not furnished inaccurate particulars of income.-501138
1. Assessee filed his return of income declaring total income at Rs. 33,86,260. Assessment was completed u/s. 143(3) (of Income Tax Act, 1961) determining total income at Rs. 37,01,970/-. Thereafter, proceedings u/s. 147 (of Income Tax Act, 1961) were initiated and order u/s. 144 (of Income Tax Act, 1961)/148 was passed by AO determining total income at Rs. 1,29,63,216/- by making various additions. Against the order of the AO, assessee appealed before CIT(A), who while upholding the reassessment, confirmed the additions and dismissed the appeal of the assesse. Tribunal partly allowed the appeal. In the second round the AO passed the consequential order giving the effect to the directions of the ITAT which was impugned and made the additions again, and imposed the penalty of Rs.51,49,038.
2. CIT(A) dismissed the appeal of the assesseeo on penalty.
3. On appeal,the ITAT held as under:
"4. In the background of the aforesaid discussions and precedent, we are of the considered view that the assessee has not furnished inaccurate particulars of income and there are no findings of the Assessing Officer and the CIT (Appeals) that the details furnished by the assessee in his return are found to be inaccurate or erroneous or false. Under these circumstances, in our view the penalty in dispute is totally unwarranted and deserve to be deleted. Accordingly, we delete the penalty in dispute made u/s. 271(1)(c) (of Income Tax Act, 1961) and quashed the orders of the authorities below on the issue in dispute and allow the appeal filed by the assessee.”
Case Reference - M/s Video Electronics Pvt. Ltd. Vs. D.C.I.T.,
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: 'H' NEW DELHI
BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER AND
SHRI O.P. KANT, ACCOUNTANT MEMBER
ITA Nos. 132 & 133/Del /2011
Assessment Year: 1990-91
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