Amit Bansal Vs ACIT (ITAT Delhi)
Material Facts
The three appeals were filed by two assessees against the orders of the Commissioner of Income Tax (Appeals) for Assessment Years 2014-15 and 2015-16. The lead case concerned a penalty levied under Section 271(1)(c) of the Income-tax Act, 1961. Following search proceedings and assessment under Section 153A read with Section 143(3), the assessee filed a return declaring additional income of ₹19,18,910 on account of short-term capital gain arising from sale of shares of M/s Sapbelle Tradelinks Pvt. Ltd. The Assessing Officer held that the additional income was disclosed only because of the search proceedings and imposed a penalty of ₹5,75,673, being 100% of the tax sought to be evaded. The CIT(A) upheld the penalty.
Procedural History
Aggrieved by the penalty order and the appellate order of the CIT(A), the assessee preferred appeals before the Tribunal challenging the levy of penalty under Section 271(1)(c).
Legal Issues
The Tribunal considered:
- Whether penalty under Section 271(1)(c) could be sustained where no incriminating material relating to the additional income was found during the search.
- Whether acceptance of the return filed under Section 153A precluded levy of penalty on the additional income disclosed therein.
- Whether Explanation 5 to Section 271(1)(c) applied to the facts of the case.
Relevant Statutory Provisions
