DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(1), KOLKATA, KOLKATA vs. RADHESHYAM AGARWALA, KOLKATA

Facts

The revenue filed appeals against the orders of the CIT(A) deleting penalties levied under section 271(1)(c) and section 270A of the Income Tax Act. The penalties were related to assessment years 2016-17 to 2020-21. The CIT(A) deleted the penalties based on reasons including no search on the assessee, the search being on the assessee's son, acceptance of the return filed under section 153C without additions, and lack of incriminating material.

Held

The Tribunal held that once a return filed under section 153C is accepted and the assessment completed without additions, it is considered as a return under section 139(1), and no penalty for concealment or inaccurate particulars is leviable. The Tribunal found no error in the CIT(A)'s order deleting the penalties.

Key Issues

Whether penalty under Section 271(1)(c) or 270A is leviable when a return filed under Section 153C is accepted without additions, and the search was conducted on the assessee's son.