Penalty U/s 271(1)(c) Not Sustainable on Deemed Addition U/s 56(2)(vii)(b) – ITAT Chennai

Ravi Vijayalakshmi Vs ITO (ITAT Chennai) The assessee purchased an immovable property jointly with her spouse for ₹2 crore, whereas the stamp duty value attributable to her share was ₹3.82 crore. The AO invoked section 56(2)(vii)(b) and added the difference as income from other sources, resulting in assessed income of about ₹3.73 crore. Based on this addition, the AO levied penalty of ₹1.10 crore u/s 271(1)(c) alleging tax evasion. The CIT(A) dismissed the assessee’s appeal primarily on the ground of delay of 34 days in filing the appeal, treating it as non-maintainable without exami...