Dineshchandra Dudhwala Vs ITO (ITAT Surat)
ITAT Surat held that each and every addition cannot be a basis for levying a penalty under section 271(1)(c) of the Income Tax Act. There has to be deliberate furnishing of inaccurate particulars or concealed income for levy of penalty. Accordingly, appeal allowed and penalty set aside.
Facts- The case of assessee was reopened u/s. 147 and notice u/s. 148 dated 27.03.2018 was served upon the assessee. In response to notice u/s. 148, the assessee filed return of income declaring income of Rs.12,31,590/- and assessment was completed by making a small addition on account cash deposit in City Bank of Rs. 60,800/- only. No further appeal was filed by assessee due to smallness of addition. The assessee has not filed any appeal to buy peace.
AO initiated penalty only on the addition of cash deposited of Rs. 60,800/-. However, while levying penalty, AO levied penalty on additional income offered by assessee in revised return of income filed in response to notice u/s. 148 of the Act. Being aggrieved, the present appeal is filed.
Conclusion- Held that So far as addition under section 69 of Rs. 60,800/- is concerned, in our view, no penalty is leviable as mere cash deposit cannot be considered income of the assessee. It is also matter of record that no further appeal is filed by the assessee. The assessee has not filed further appeal due to smallness of the addition. Mere no further appeal is filed; it cannot be taken as admission on the part of the assessee. Each and every addition cannot be a basis for levying a penalty under section 271(1), unless there is a finding of AO that the assessee has deliberately furnished inaccurate particulars or concealed the income. The ld AR of the assessee is her submissions categorically submitted that the bank account on the credit of which, the penalty is levied, was shown in his cash book and such deposit was not unexplained. Thus, we considering the aforesaid facts we do not find any justification for levying penalty even on the addition of Rs. 60,800/-. In the result, the grounds of appeal raised by the assessee are allowed.
