No Penalty Under Section 271(1)(c) When No Tax is Evaded

Smt. Kavita Sachdev Vs ITO (ITAT Indore)

Issue: Whether penalty under Section 271(1)(c) of the Income Tax Act, 1961  can be levied when the assessee had paid self-assessment tax before the issue of notice under section 148.

BRIEF FACTS: The assessee failed to file the original return for the relevant year but paid self-assessment tax before a notice u/s 148 was issued for reassessment. The Assessing Officer (AO) completed the assessment under Section 147 and levied a penalty u/s 271(1)(c) for concealment of income.

ASSESSEE’S CONTENTIONS:

1. The assessee paid self-assessment tax voluntarily before the notice u/s 148.

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