Case Law Details
Manoj Mittal Vs DCIT (ITAT Delhi)
ITAT Delhi held that penalty under section 271(1)(c) of the Income Tax Act not leviable since there is no concealment of particulars of income by the assessee.
Facts- The assessee is an individual filed his return of income on 30.09.2010 declaring income of Rs.47,28,153/-. The assessment was completed u/s 143(3) of the Act making an addition of Rs.18,42,000/- on account of loan received by the assessee which was treated as deemed dividend u/s 2(22)(e) of the Act.
The assessee preferred an appeal before the Ld.CIT(A) and also the Tribunal. The Tribunal restricted the addition towards deemed dividend u/s 2(22)(e) to Rs.4,73,526/- being the accumulated profits of the company M/s Mittal Construction and Real Estate Pvt. Ltd. as on the date of transfer of loan as the assessee was having more than 10% of the shareholding of that company.
Pursuant to the order of the Tribunal, AO initiated penalty proceedings u/s 271(1)(c) of the Act and levied penalty of Rs.1,46,319/- . CIT(A) sustained the penalty. Being aggrieved, the present appeal is filed.
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