Case Law Details
Jhodinda Bhojpura Gram Sewa Sahakari Samiti Ltd Vs ITO (ITAT Jaipur)
It is well-settled that assessment proceedings and penalty proceedings are separate and distinct and as held by the Supreme Court in the case of Ananthraman Veera singhaiah & Co.Vs. CIT [1980] 123 ITR 457, the finding in the assessment proceedings cannot be regarded as conclusive for the purposes of the penalty proceedings. It is, therefore, necessary to reappreciate and reconsider the matter so as to find out as to whether the addition made in the proceedings actually represents the concealment on the part of the assessee as envisaged in section 271(1)(c) and whether it is a fit case to impose the penalty by invoking the said provisions.
We find that there is no finding of the AO based on some contradictory evidence to disapprove that explanation offered by the assessee was false or the assessee was not able to substantiate the explanation furnished or fails to prove that such explanation is not bona fide and that all the facts relating to the same and material to the computation of his total income has not been disclosed by him. Therefore the order on the CIT(A) is accordingly set aside and thus penalty u/s 271(1)(c) levied by the AO is not in accordance with law therefore same is cancelled.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi (hereinafter called as ‘NFAC’) dated 26.11.2021 penalty of Rs.3,87,000/- levied u/s. 271 (1) (c) of the Income Tax Act, 1961 (in short ‘’the Act”) for the Assessment year 2010-11.
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