JASWANTH KUMAR KOTHARI,MYSORE vs. ADDL COMMISSIONER INCOME TAX, MYSORE

The Assessing Officer imposed penalty u/s.271(1)(c) of the Act, for furnishing of inaccurate particulars of income / ITA.1906/Bang/2016 Page - 2 concealment of income, of Rs.12,24,884/- and Rs.30,00,000/- for assessment years 2005-06 and 2006-07 respectively. Aggrieved with the penalty orders the assessee filed appeals before the CIT (A).

On appeal the CIT (A) upheld the penalties imposed by the AO, after relying upon the judgment of the Hon’ble Supreme Court in the case of MAK Data P. Ltd v. CIT [(2013) 38 taxmann.com 448]. Therefore the assessee is in appeals before us.

At the outset the Ld. AR has drawn our attention to the order passed by the Tribunal in the assessee’s own case, for the assessment years 2005-06, 2006-07 and also 2007-08 in quantum appeals in 1027, 2048/Bang/2013, dt.23.03.2017. The coordinate bench while hearing the quantum appeals had deleted all the additions made by the AO. For that purposes the assessee has also drawn our attention to the order giving effect to, for the assessment year 2005-06, at page 47 and 48 of the paper book. It was submitted by the Ld. AR for the assessee that as all the additions in the quantum appeals have been deleted by the Tribunal and the orders giving effect to the Tribunal order has also been passed therefore, there should not be any imposition of penalty by the authorities below.

On the other hand the Ld. DR supported the order passed by the lower authorities.

We have heard the rival contentions and perused the record. In our view once the quantum additions are deleted by the Tribunal then, there is no question of furnishing either inaccurate particulars or concealment of income. The alleged concealment of income has not stood the scrutiny of the ITAT. Accordingly the same were deleted by the Tribunal. Therefore in our considered opinion the penalty cannot be sustained and is therefore deleted. We delete the same. However, we make it clear that in case the Revenue gets any relief in quantum proceedings before the Hon’ble High Court, then the Revenue will have a right to move an application before the Tribunal.