Case Law Details
Dinesh Kumar Agarwal Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that penalty u/s 271(1)(c) of the Income Tax Act not leviable as computation of income resulting into higher income is only a difference of opinion.
Facts- Though the assessee has taken five grounds of appeal, but his grievances revolve around a single issue, namely ld. CIT(Appeals) has erred in confirming the penalty of Rs.1,65,780/-imposed by the ld. Assessing Officer under section 271(1)(c) of the Income Tax Act.
Conclusion- A perusal of the penalty order would suggest that the ld. Assessing Officer has not recorded any categorical finding whether assessee has submitted inaccurate particulars of income or concealed the income. The ld. Assessing Officer has simply avoided all these mandatory factors of section 271(1)(c) by observing that assessee has evaded tax. It is the established position of law that ld. Assessing Officer has to demonstrate the charge against the assessee for which he wished to impose a penalty upon the assessee. A perusal of the assessment order would reveal that he initiated the penalty for concealment of income but no such finding is discernable in the penalty order.
Apart from the above, event on merit, no penalty is imposable upon the assessee because this computation of income resulting into higher income is only a difference of opinion. The assessee has given an explanation as to why this higher alleged income made by the ld. Assessing Officer was not disclosed by the assessee. This explanation was not found to be false because it has been offered in the next year. The assessee has already suffered double taxation on this estimation of profit on the alleged undisclosed receipts. In view of the above, the assessee does not deserve to be visited with penalty under section 271(1)(c) of the Act. We allow the appeal of the assessee and delete the penalty.
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