MR. SUNIL BAKHT,NEW DELHI vs. ACIT, NEW DELHI
What did the Tribunal hold?
The Tribunal found that the penalty was levied on income that the assessee had already disclosed and paid tax on. Therefore, the matter was set aside to the AO for fresh adjudication.
What were the facts?
The assessee appealed against a penalty levied under Section 271(1)(c) of the Income-tax Act. The penalty was imposed not only on an addition made by the AO but also on income voluntarily disclosed by the assessee in their return.
What were the issues?
Whether penalty under Section 271(1)(c) can be levied on income voluntarily disclosed by the assessee and on which tax has already been paid.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCHÉS,
Before: SHRI N.K.SAINI, & SHRIA.T. VARKEY
Per N.K. SAINI, AM :- The assessee has filed this appeal against the order of CIT (Appeals)- 13, New Delhi dated 23.01.2015 for the assessment year 2009-10.
The only grievance of the assessee raised in this appeal is against the sustenance of penalty u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] levied by the AO.
During the course of hearing, the ld. Counsel for the assessee, at the very outset, submitted that in this case addition was made only of Rs. 52,060/-. However, the penalty has also been levied u/s 271(1)(c) on the income which was offered by the assessee himself in the computation of income and due tax was paid on that. It was further stated that the ld. CIT(A) has not taken cognizance of the said submission of the assessee, therefore, it is requested that the matter may be sent back to the AO for fresh adjudication.
The ld. DR, in his rival submissions strongly supported the order of the ld. CIT(A) who had confirmed the penalty levied by the AO, however, could not controvert the aforesaid factual matrix of the case by bringing on record any cogent material.
We have heard the rival submissions and have perused the relevant material on record. In our considered opinion, this issue deserves to be set aside to the file of the AO to be adjudicated afresh since the penalty u/s 271(1)(c) has been levied not only on the addition made by the AO but also on the income which was disclosed by the assessee suo moto in the returned income. In that view of the matter, we deem it appropriate to set aside the impugned order and remand the case back to the file of the AO for fresh adjudication in accordance with law after providing due and reasonable opportunity of being heard to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in open court on this 19th day of November, 2015 after conclusion of the hearing.
More judgments on Section 271(1)(c)
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- Shalin Jayantbhai Desai, Vadodara vs ACIT, Circle-4(2), Vadodara Present…ITA 2569/AHD/2026[2010-11]Status: Disposed19 Oct 2026AY 2010-11
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2370/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2369/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
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