Case Law Details
DCIT Vs Raytheon Company (ITAT Delhi)
ITAT Delhi held that imposition of penalty u/s. 271(1)(c) of the Income Tax Act unsustainable in absence of any concealment of income or furnishing inaccurate particulars of income by the assessee.
Facts- The assessee filed returns of income declaring Nil incomeand the assessments were completed u/s 143(3) r.w.s. 144C of the Act bringing to tax the amounts received by the assessee towards supply of spares contract and rotary joints on the contracts entered into with Airports Authority of India, contract for hardware repair support, contract for software maintenance support, supply of spares etc. CIT(A) deleted the additions. Notably, the appeals were settled under Mutual Agreement Procedures (MAP) and the additions were reduced and pending appeals before ITAT were dismissed.
Consequent to MAP proceedings final orders were passed and the penalties were levied u/s 271(1)(c) of the Act for concealment of income against which the assessee preferred appeals before the Ld.CIT(A) and the Ld.CIT(A) deleted the penalty. The Ld. DR strongly supported the orders of the Assessing Officer in levying penalty u/s 271(1)(c) of the Act.
Conclusion- CIT(A) while deleting the penalty levied u/s 271(1)(c) of the Act held that the assessee has not concealed any particulars of income and has disclosed all material facts during the assessment as well as MAP proceedings.
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