SHRI BHOJRAJ P. LUHANA L/H OF LATE KHUSHBUBEN R.MANWANI,,ANAND vs. THE INCOME TAX OFFICER,WARD-1,, ANAND

By way of this appeal, the assessee appellant has challenged learned CIT(A)’s order dated 27th February 2015, upholding penalty of Rs.3,03,171/- imposed upon the appellant under section 271(1)(c) of the Income-tax Act, 1961, for the assessment year 2008-09.

When the appeal was called out for hearing, learned representatives fairly accepted that the issue in appeal is covered, in favour of the assessee, by several decisions of this Tribunal, including in the cases of Srikishan Agarwal vs. DCIT [(2016) 48 ITR (T) 548 (Jaipur)] and ITO vs. VP Sharma [(2016) 154 Taxman 34 (Del) Mag], inasmuch as penalty under section 271(1)(c) cannot be imposed on the legal heir. Learned Departmental Representative nevertheless relied upon the stand of the authorities below.

I have heard the rival contentions, perused the material on record and duly considered applicable legal position in the light of facts on record.

I find that the assessee, late Khusbuben R Manwani, had passed away on 04.09.2009, whereas the impugned penalty order was framed on the legal heir on

In the result, the appeal is allowed in the terms and for the reasons set out above. Pronounced in the open court today on the 1st April, 2019.