Case Law Details
Case Name : P.V. Ramana Reddy Vs. ITO (ITAT Hyderabad)
Related Assessment Year : 1999- 2000
Courts :
All ITAT ITAT Hyderabad
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P.V. Ramana Reddy Vs. ITO (ITAT Hyderabad)- Assessing Officer is vested with a discretionary power to levy or not to levy any penalty in a deserving case. In the case of Hindustan Steel Ltd Vs. State of Orissa (83 ITR 26) (SC), held that penalty should not be imposed merely because it is lawful to do so. The Assessing Officer has to exercise his discretion judiciously. If an assessee files the revised return though at a later stage or disclosed true income, penalty need not be levied. No doubt, merely offering additional income will not automatically protect the assessee from levy of penalty b...
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very nicely analaysied the provisions of penalty leviable u/s.271(1)(c) of the IT Act by the Hon’ble Tribunal. The approach of the department that in case of every acceptance for addition autotmatically leads concealement of income or amounts furnishing of inaccurate particulars of income is an erroneous view. Huge penalty when levied, more discretion and judicious approach is needed. Though I do not mean that there should not levy of penalty at all u/s. 271(1)(c) of the Act, when the burden to prove is a negative fact , more discretion in favour of the assesee needs to be exercised and the decision of the Hon’ble Apex court in Hindusthan Steels requires to be appplied. A very reasonsed order of the Tribunal explaining legal position.