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Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI
Before: SH. N. K. BILLAIYA & SH. K. N. CHARY
This appeal filed by the assessee is preferred against the order of the CIT(A), Muzaffarnagar dated 31.08.2018 for A.Y. 2013-14. 2. The sum and substance of the grievance of the assessee is that the CIT(A) erred in confirming the penalty of Rs.32500/- levied by the AO u/s. 271 (1) (c) of the Act.
The roots for the levy of penalty lie in the assessment order dated 31.03.2016 framed u/s.143 (3) of the Act. The AO, interalia made addition of Rs.496000/- on account of penalty interest paid to Punjab National Bank and Rs.1,05,000/- on account of fee paid to ROC. The penalty proceedings were separately initiated. The relevant findings in the penalty order read as under :-
4. From the above it can be seen that the AO was not certain whether he is initiating penalty proceedings for concealing the particulars of income or furnishing inaccurate particulars of income.
We are of the considered view that disallowance of expenditure would not amount to concealment of income or furnishing inaccurate particulars of income. The ratio laid-down by the Hon’ble Supreme Court in the case of Reliance Petro Products 322 ITR 158 squarely apply on the facts of the case in hand, therefore, we do not find any merit in the levy of penalty u/s. 271 (1) (c) of the Act and the same is directed to be deleted. 6. In the result, the appeal filed by the assessee is allowed.
Decision announced in the open court in the presence of both representatives on 25.10.2021.