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ITAT, following its co-ordinate bench’s order, confirmed deletion of penalty
ITAT, following its co-ordinate bench’s order, confirmed deletion of penalty
In Sh Ghansham Shewakramani’s case, AO found that assessee had taken loan and advances from various companies in which he had more than 10% share holding. AO added an amount of Rs 62 lakhs as deemed dividend u/s 2(22)(e) (of Income Tax Act, 1961). and imposed penalty. CIT(A) confirmed addition and deleted penalty. ITAT following its co-ordinate bench’s order in assessee's own case in the preceding assessment year, confirmed deletion of penalty.-500316
1. Assessee individual derived income from salary, house property and income from other sources.
2. AO during scrutiny proceedings that assessee had taken loan and advances from various companies in which he had more than 10% share holding.
3. AO added an amount of Rs 62 lakhs as deemed dividend u/s 2(22)(e) (of Income Tax Act, 1961).
4. CIT(A) confirmed addition.
5. AO levied penalty u/s 271(1)(c) (of Income Tax Act, 1961).
6. CIT(A) deleted the penalty
On appeal, the ITAT held as under:
7. We have observed that the penalty so levied for assessment year 2007-08 on the quantum additions sustained on account of deemed dividend u/s 2(22)(e) (of Income Tax Act, 1961) has already been deleted by the Tribunal vide its order dated 30-10-2015 in ITA No. 7507/Mum/2013 (supra) for assessment year 2007-08.
8. The Tribunal has held that since the assessee has disclosed all the facts of the loans taken from various companies, then even if the addition has been confirmed by invoking the deeming provision, that too which has verified from assessment stage to appellate stage, it does not amount to furnishing of inaccurate particulars so as to attract penalty u/s 271(1)(c) (of Income Tax Act, 1961).
9. We have observed that the facts in the present appeal are identical to the facts as in the appeal before the Tribunal for assessment year 2007-08 in ITA No. 7507/Mum/2013 decided on 30-10-2015.
10. Respectfully following the order of the co-ordinate bench of this Tribunal in the case of the assessee's own case in the preceding assessment year i.e. assessment year 2007-08, we confirm deletion of the penalty of Rs.20,92,599 levied u/s 271(1)(c) (of Income Tax Act, 1961) .
Case Reference - A.C.I.T vs Shri Ghansham Shewakramani.
IN THE INCOME TAX APPELLATE TRIBUNAL "G" BENCH, MUMBAI
BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND
SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER
I.T.A. No. 3262 /Mum/2014
(Assessment Year : 2008-09)
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