VADIVELU JANAKARAJ,CHENNAI vs. ACIT , NON CORP CIRCLE - 20 (1), CHENNAI

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. & 1100/Chny/2022 - 3 -

Both the appeal stands allowed.