NAMDEO VITTHAL KHATALE,,NASHIK vs. INCOME-TAX OFFICER, WARD - 14(3),, PUNE

This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)-1, Nashik [‘the CIT(A)’] dated 14.11.2018 for the assessment year 2010-11 confirming the levy of penalty of Rs.2,50,000/-.

Briefly, the facts of the case are that the appellant is an individual and had not filed the return of income u/s 139 of the 2 Income Tax Act, 1961 (‘the Act’) nor responded to notice u/s 148 of the Act. During the course of assessment proceedings, the Assessing Officer found that the appellant along with two others, namely, Shri Harishchandra V. Khatale and Shri Kisan V. Khatale entered into an agreement for sale of property situated at Igatpuri, Nashik for sum of Rs.65,36,000/- and the appellant had received his share of consideration of Rs.12,50,000/- and had not disclosed the share of consideration in the return of income nor cooperated with the assessment proceedings. Accordingly, the Income Tax Officer, Ward-1(3), Nashik (‘the Assessing Officer’) completed the assessment vide order dated 26.03.2014 passed u/s 143(3) r.w.s. 144 of the Act by bringing to tax the consideration of Rs.12,50,000/-. Even on appeal before the ld. CIT(A), the action of the Assessing Officer was confirmed. Subsequently, the Assessing Officer had proceeded with levy of penalty u/s 271(1)(c) of the Act holding that the assessee is guilty for concealment of particulars of income and levied a penalty of Rs.2,50,000/- vide order dated 29.09.2014 passed u/s 271(1)(c) of the Act.