VADIVELU JANAKARAJ,CHENNAI vs. ACIT , NON CORP . CIRCLE -20 (1), CHENNAI
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: HON’BLE SHRI V. DURGA RAO & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of certain penalty u/s 271(1)(c) for captioned assessment years (AY), the assessee is in further appeal before us. The facts in both the years are identical. The appeal for Assessment Year (AY) 2012-13 arises out of order passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 28-10-2022 in the matter of penalty
ITA Nos.1099 & 1100/Chny/2022 - 2 - levied by Ld. Assessing Officer [AO] vide order dated 01.01.2022. The orders for AY 2013-14 are on same lines. Having heard rival submission, the appeals are disposed-off as under. 2. In AY 2012-13, an assessment was framed u/s 143(3) r.w.s. 147 on 24.09.2019 making additions of Rs.2.58 Lacs on account of speculative income from trading in commodity derivatives. The said income was already admitted in the return of income filed by the assessee. Consequently, penalty proceedings were initiated u/s 271(1)(c) for concealment of income. The assessee, inter-alia, defended its stand on the ground that it did not really earned any real income and the total investments were ultimately lost. Only to buy peace, the assessee returned the income in two years and claimed the loss in third year. However, Ld. AO imposed penalty of Rs.0.79 Lacs on the ground that if the case had not been reopened, the income would have not been taxed in the hands of the assessee. The ld. CIT(A) confirmed the penalty against which the assessee is in further appeal before us. The penalty of Rs.0.77 Lacs was levied as well as confirmed for AY 2013-14 on similar lines.
Upon perusal of facts, it emerges that the assessee has already declared the income in the return of income and the same has been accepted. The concealment of income has to be in the return of income filed by the assessee. Secondly, the assessee has not earned any real income and overall there is a loss for the assessee. Considering these facts, it is not a fit case for levy of penalty. By deleting the same, we allow the appeals for both the years.
ITA Nos.1099 & 1100/Chny/2022 - 3 -
Both the appeal stands allowed.
Order pronounced on 23rd January, 2023.
Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) �ाियक सद3 /JUDICIAL MEMBER लेखा सद3 / ACCOUNTANT MEMBER
चे*ई / Chennai; िदनांक / Dated : 23-01-2023 EDN/- आदेश की Uितिलिप अ8ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु� (अपील)/CIT(A) 4. आयकर आयु�/CIT 5. िवभागीय �ितिनिध/DR 6. गाड� फाईल/GF