As additions as undisclosed income on a/c of unexplained cash set aside, thus penalty can't survive, ITAT
As additions as undisclosed income on a/c of unexplained cash set aside, thus penalty can't survive, ITAT
Assessee filed Income return. In assessment AO made additions. On appeal CIT(A) confirmed it, On account of unexplained bank deposits was basis for levy of penalty u/s 271(1)(c) (of Income Tax Act, 1961). On appeal ITAT held, Since addition as undisclosed income on a/c of unexplained deposits in assessee's bank a/c in period relevant to A.Y.has been set aside, consequential levy of penalty of u/s 271(1)(c) (of Income Tax Act, 1961) on count would not now survive for consideration.-500920
Facts in Brief:
1. Assessee filed return of Income.
2. In assessment addition of `37,10,901/- made by the AO.
3. On appeal CIT(A) confirmed it, On account of unexplained bank deposits was the basis for levy of penalty of `12,49,040/- under section 271(1)(c) (of Income Tax Act, 1961).
On appeal ITAT held,
4. Since the addition of `37,10,901/- as undisclosed income on account of unexplained deposits in the assessee's bank account in the period relevant to A.Y. 2007-08 has been set aside, the consequential levy of penalty of `12,49,040/- under section 271(1)(c) (of Income Tax Act, 1961) on the count would not now survive for consideration.
5. In this view of the matter, this appeal by the assessee is rendered infructuous and is accordingly dismissed.
Case Reference - Mumbai Viren Diamond Exports Ltd, Mumbai vs Assessee
(Income Tax Appellate Tribunal)
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