Penalty u/s 271(1)(c) not leviable as addition made on account of difference of opinion

Rajesh Kumar Agarwal Vs DCIT (ITAT Jaipur)

ITAT Jaipur held that penalty u/s 271(1)(c) of the Income Tax Act not leviable as addition made on account of meager amount and on account of difference of opinion only.

Facts- The assessment of the assessee was completed on 11.11.2019 determining total income at Rs. 20,61,940/- [the assessee has increased the returned income on account of STCG of Rs. 1,56,298/-] by making addition of Rs. 21,300/- being the amount of income received from sale of penny stock. As the additions were made penalty proceedings u/s. 271(1)(c) of the Act for furnishing inaccurate particulars of income were initiated. The notice for penalty proceeding were issued and in response the assessee filed its objection to the levy of penalty. Based on the discussion the made in the order of levying penalty 100 % tax sought to be evaded was charged u/s. 271(1)(c) of the Act for an amount of Rs. 54,879/-.

Aggrieved from the order of the assessing officer levying penalty assessee preferred an appeal before the ld. CIT(A).
As the assessee not received any favour from the appeal filed before NFAC. The present appeal filed against the said order of the NFAC dated 28.02.2023 before this tribunal.

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