SHRI ABHIJIT UTTAMRAO DESHMUKH,BEED vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-3, AURANGABAD, AURANGABAD

Although a number of grounds have been raised by the assessee, however, these all relate to the order of the Ld. CIT(A) / NFAC in confirming the penalty of Rs.83,04,375/- levied by the Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

Facts of the case in brief, are that the assessee is an individual. On the basis of information received from Dy. Director of Income Tax (Inv.) that the assessee has received an amount of Rs.2.5 crores in financial year 2010-11 against sale of land to Hi-tech Engineering Corporation India Pvt. Ltd., Baramati and the said amount has been written off by Hi-tech Engineering Pvt. Ltd. in their balance sheet, the case of the assessee was reopened as per the provisions of section 147 of the Act. Accordingly, notice u/s 148 of the Act was issued. The assessee had neither filed the original return nor filed any return in response to the notice u/s 148. The notice issued u/s 142(1) also remains un-complied with. The Assessing Officer, therefore, completed the assessment u/s 144 of the Act determining total income of the assessee at Rs.6,17,50,440/- by adding the amount of Rs.2.5 crores to the total income of the assessee.

The assessee filed an appeal before the Ld. CIT(A) / NFAC which was pending. In the meantime, the Assessing Officer initiated penalty proceedings u/s 271(1)(c) of the Act. In absence of any compliance from the side of the assessee to the notice u/s 271(1)(c) of the Act, the Assessing Officer levied penalty of Rs.83,04,375/- u/s 271(1)(c) of the Act being the minimum penalty leviable.