CHETAN KHARA,KOLKATA vs. INCOME TAX OFFICER, WARD-34(3), KOLKATA, KOLKATA

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ITA 2675/KOL/2013Status: DisposedITAT Kolkata17 November 2017AY 2004-20053 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that penalty under section 271(1)(c) cannot be levied when there is no variation between the returned income and the assessed income, and the revised return was accepted. The penalty order was also found to be bad in law due to a lack of specific charge.

What were the facts?

The assessee filed a revised return of income declaring additional income after a notice under section 148. The Assessing Officer (AO) completed the assessment at the same figure declared in the revised return, making no additions. Subsequently, a penalty under section 271(1)(c) was levied.

What were the issues?

Whether penalty under section 271(1)(c) is leviable when the revised return is accepted without any additions by the AO. Whether the penalty order is valid without a specific charge of concealment or furnishing inaccurate particulars.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 148,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENCH ‘D’ KOLKATA

Before: Hon’ble Shri J.Sudhakar Reddy, AM & Shri A.T.Varkey, JM ]

ORDER PER J.SUDHAKAR REDDY, AM:

This is an appeal by the Assessee directed against the order of the Commissioner of Income Tax-(A)- XX, Kolkata relating to A.Y. 2004-05 wherein a Penalty levied u/s 271(1)(c) of the Income Tax Act, 1961 (Act) was confirmed.

2.

After hearing the rival contentions, we find that the assessee filed return of income for the impugned assessment year 2004-05 on 26.04.2010 in response to the notice u/s 148 of the Act, declaring total income of Rs.2,57,794/-. The AO completed the assessment u/s 143(3) of the Act assessing the total income of the assessee at the same figure of Rs.2,57,794/-. Penalty u/s 271(1)(c) of the Act was initiated as the assessee had shown additional income of Rs.1,48,.540/- in the revised return of income. Thereafter penalty was levied.

3.

Penalty in this case has been initiated in the assessment order, which is passed on the return of income filed by the assessee, where the assessee had declared income of Rs.2,57,794 and the AO assessed the income on the same figure. There is no addition whatsoever by the AO. When there is no variation in the income returned and the income assessed and as the revised return of income has been accepted, no penalty u/s Khara A.Y.2004-05 2 271(1)(c) of the Act lies. Penalty u/s 271(1)(c) for concealment of income or furnishing of inaccurate particulars is in relation to the income declared in the return of income based on which the assessment has been framed. In case on hand there is no finding that theere was concealment of income or furnishing inaccurate particulars of income in the revised return of income filed, based on which the assessment has been done and there is no finding that the additional income declared in this revised return of income was deemed concealed income which arose out of investigation by the revenue. Even otherwise nowhere in the penalty order the AO has stated the charge for which penalty is levied u/s 271(1)(c). There is no specific charge stating as to whether the assessee has concealed his income or whether he has furnished inaccurate particulars of income. The penalty levied is bad in law on this ground also. Thus we cancel the penalty levied and allow the appeal of the assessee.

4.

In the result the appeal of the assessee is allowed.

Order pronounced in the Court on 17th November, 2017.

Sd/- Sd/- [A.T.Varkey] [ J.Sudhakar Reddy ] Judicial Member Accountant Member Dated : 17th November, 2017. [RG PS] Copy of the order forwarded to: 1.Mr.Chetan Khara, C/o M/s. Baid & Company, Chartered Accountants, 10/C, Ballygunje Circular Road, 2nd Floor, Kolkata-700019. 2. I.T.O., Ward-34(3), Kolkata. 3. C.I.T.(A)-XX, Kolkata 4.C.I.T-XII, Kolkata. 5. CIT(DR), Kolkata Benches, Kolkata. True Copy By order, Senior Private Secretary Head of Office/D.D.O, ITAT Kolkata Benches -Chetan Khara A.Y.2004-05 3

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