AJOY SHARMA ,JAIPUR vs. DCIT CENTRAL CIRCLE-1, JAIPUR, JAIPUR

ITA 545/JPR/2024Status: DisposedITAT Jaipur22 July 2024AY 2014-1543 pages
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What did the Tribunal hold?

The Tribunal held that the penalty under section 271(1)(c) was not legally sustainable. It was noted that the assessee disclosed the error before the notice under Section 148 was issued, paid the differential tax, and the penalty notice was defective. The Tribunal emphasized that penalty proceedings are quasi-criminal and require positive evidence of intentional concealment, which was lacking.

What were the facts?

The assessee filed a return of income after the prescribed time limit, which was considered invalid. Subsequently, during reassessment proceedings initiated due to suspected erroneous deductions and non-disclosure of income, the assessee revised the income and paid the due tax. However, the Assessing Officer initiated penalty proceedings under section 271(1)(c) for furnishing inaccurate particulars and concealing income.

What were the issues?

Whether penalty under Section 271(1)(c) can be imposed when the assessee voluntarily discloses errors and pays differential tax before assessment, and whether a defective penalty notice invalidates the penalty.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 139(4),Section 147,Section 148,Section 274

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Income Tax Appellate Tribunal, JAIPUR BENCHES,”SMC” JAIPUR

Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI,

For Appellant: Adv. &, Adv. राजस्व की ओर से /
For Respondent: Smt. Monisha Choudhary, Addl. CIT
Hearing: 04/07/2024Pronounced: 22/07/2024

PER: RATHOD KAMLESH JAYANTBHAI, AM These bunch of five appeals filed by assessee are arising out of the order of the National Faceless Appeal Centre, Delhi dated 26/02/2024 [here in after ‘NFAC') ] for assessment years 2012-13 to 2016-17 which in turn arise from the order dated 12.12.2018 passed under section 271(1)(c) of the Income

The order continues below.

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