ACIT Vs RBL Bank Ltd. (ITAT Pune)
1. The recently, the Hon’ble Pune Income Tax Appellate Tribunal (ITAT) in ITA No.657/PUN/2024 examined the case of imposition of a penalty under Section 271(1)(c) of the Income-tax Act, 1961 (the Act). The key aspects of the decision are summarized as follows:
2. The Assessee had a long history of compliance with tax obligations and has never defaulted on tax payments. The Assessee had filed original return of income which was later on revised due to certain errors. In this regard, the Assessee had filed letter with the tax officer. The case of the assessee was selected for scrutiny. During assessment proceedings, the Assessee filed another revised return.
3. The tax officer completed the assessment proceedings and passed order making certain additions. In addition to above assessment order, the tax officer had also initiated penalty proceedings u/s 271(1)(c). The Assessee had preferred appeal before the CIT(A) whereas it was decided in favour of the revenue.
4. In view of this, the Assessee had filed appeal before the Hon’ble ITAT against above CIT(A) order and later decided to withdraw the same. Having noted this, the tax officer issued show cause notice and enquired why penalty should not be imposed u/s 271(1)(c) in relation to addition made in the assessment order and passed penalty order imposing penalty. Against this, the Assessee filed appeal before the CIT(A) and based on Assessee’s submissions, the CIT(A) deleted the penalty. Accordingly, the tax officer filed appeal before the Hon’ble ITAT.
