Jorge Azevedo Pereira Vs DCIT (ITAT Panaji)
Material Facts
The appeal pertained to Assessment Year 2016-17 and challenged the order of the National Faceless Appeal Centre dated 09.11.2024 affirming penalty of Rs.17,29,440 levied under Section 271(1)(c) of the Income-tax Act, 1961 for alleged furnishing of inaccurate particulars of income relating to disallowance of Rs.1,08,59,912.
The assessee had filed the return of income on 29.07.2016 declaring total income of Rs.1,86,55,740, mainly comprising long-term capital gains of Rs.1,83,94,699. During assessment under Section 143(3), the Assessing Officer recomputed the long-term capital gains by disallowing:
- Indexed cost of improvement (maintenance expenditure) – Rs.77,54,662.
- Caretaker expenses – Rs.2,81,500.
- Barbed wire fencing expenses – Rs.37,500.
- Interior advances – Rs.27,00,000.
- Professional fees – Rs.86,250.
The assessee failed to obtain relief in the quantum proceedings before the CIT(A) and did not pursue any further appeal before the Tribunal. Thereafter, penalty proceedings under Sections 274 and 271(1)(c) were initiated and culminated in levy of penalty, which was confirmed by the CIT(A).
Procedural History
Following confirmation of the quantum additions by the CIT(A), the Assessing Officer initiated penalty proceedings under Section 271(1)(c). After issuance of notice under Section 274, the Assessing Officer levied penalty of Rs.17,29,440, which was upheld by the CIT(A). The assessee appealed before the ITAT.
