Gangadhar Gopinath Wagh Vs ITO (ITAT Pune)
In this case, penalty u/s 271(1)(c) was levied on a salaried assessee for claiming excess deductions, allegedly resulting in inaccurate particulars of income.
Key facts:
- Assessee’s return was filed by a tax consultant who fraudulently claimed excess deductions without the assessee’s knowledge.
- On discovering the issue:
- Assessee voluntarily paid tax + interest (before issue of notice u/s 148)
- Filed correct return in response to notice
- AO still levied penalty, upheld by CIT(A), on ground that correction was not voluntary
ITAT Findings:
- Assessee was a salaried individual with no tax expertise, fully dependent on consultant
- Fraud by consultant was established (including complaints and survey findings)
- Crucially:
- Tax + interest paid BEFORE notice u/s 148
- No deliberate concealment by assessee
Decision:
- This is not a fit case for penalty u/s 271(1)(c)
- Penalty deleted for all years
Final outcome:
- All appeals allowed
- Relief granted on bona fide mistake + voluntary compliance
FULL TEXT OF THE ORDER OF ITAT PUNE
These appeals filed by the assessee are directed against the separate orders dated 12.03.2025 passed by Ld. CIT(A)/NFAC for the assessment years 2016-17 to 2018-19 respectively.
2. Since identical facts and common issues are involved in all the above captioned three appeals of the assessee, therefore, we proceed to dispose of the same by this common order.
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