Classic Share & Stock Broking Services Limited Vs DCIT (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal, Mumbai arose from an order of the National Faceless Appeal Centre confirming the levy of penalty under section 271(1)(c) of the Income-tax Act, 1961, for AY 2012-13. The assessee challenged the penalty primarily on the ground that the notice issued under section 274 read with section 271(1)(c) was a printed notice which did not specify whether the penalty was for concealment of income or for furnishing inaccurate particulars, alleging non-application of mind.
At the outset, the Tribunal dealt with a delay of 188 days in filing the appeal. Based on an affidavit explaining that the delay occurred due to inadvertent administrative oversight and relying on the principle that substantial justice should prevail over technicalities, the Tribunal condoned the delay and admitted the appeal.
On merits, the Tribunal noted that the assessee had not filed a return under section 139 but filed a return in response to a notice under section 148 declaring nil income and losses. The assessment was completed under section 143(3) read with section 147, determining total income after disallowing substantial expenses on the ground that there was no business activity during the year and that only interest and dividend income had been earned. Penalty proceedings were initiated for furnishing inaccurate particulars of income.
