Case Law Details
Dipakkumar Ishwarlal Panchal Vs ITO (ITAT Ahmedabad)
Admittedly the concealment/furnishing of inaccurate particulars of income, for which act penalty under section 271(1)(c) in the present case has been levied, related to the income added as per the provisions of section 56(2)(x) of the Act. More particularly on account of the fact that actual consideration paid for purchase of a property was less than its stamp duty value. It is not the case of the Revenue that the assessee was actually found to have paid any amount over and above actual purchase price of the asset. Moreover section 56(2)(x) of the Act, under which the addition has been made, is a deeming provision only. Further, we have noted that the assessee had given reasons for the property not being capable of fetching the jantri value. There is no finding by the Revenue to the effect that the explanation of the assessee was false or not bona fide. In fact no effort /inquiry or investigation has been made by the Revenue to verify the explanation of the assessee. The surrender made by the assessee of the deemed income has been accepted as such by the Revenue. The assessee had given this explanation, and thereafter surrendered the balance amount to buy peace of mind; meaning thereby that he had accepted the addition under protest; though not in substance agreeing to the proposition of law under which the addition has been made.
In the facts and circumstances, where the assessee had objected to the invocation of section 56(2)(x) of the Act in its case for the purpose of making addition and had given a reason for the same, which the Revenue has not found to be false or not bona fide and in any case the addition having been made on account of deeming fiction, the assessee having not been found to have actually made any payment in excess of the such price, we are of the view that the assessee cannot be said to have concealed or furnished inaccurate particulars of income so as to attract levy of penalty under section 271(1)(c) of the Act amounting to Rs.1,18,965/-.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
Present appeal has been filed by the assessee against order passed by the ld.Commissioner of Income-Tax (Appeals)-3, Ahmedabad [hereinafter referred to as “CIT(A)”] dated 10.9.2020 confirming the levy of penalty for concealing/furnishing inaccurate particulars of income ,under section 271(1)(c) of the Income Tax Act, 1961 (“the Act” for short) and pertaining to Asst.Year 2016-17.
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