Smt. Himani Goyal Sharma Vs DCIT (ITAT Amritsar)
Return witdarwing the claim in the orininal return- No Penalty Where Income Declared in Reassessment Is Accepted:
The Amritsar Bench of the ITAT allowed the assessee’s appeals for AYs 2011-12 to 2015-16 and deleted penalties levied under section 271(1)(c), which had been partially sustained by the CIT(A). The Tribunal noted that although the assessments were reopened, the assessee filed returns in response to the notices declaring correct income by withdrawing inadmissible claims (Chapter VIA deduction, house property loss, etc.), and the Assessing Officer accepted the returned income in each year without making any further addition or disallowance.
Relying on binding judicial precedents, including the Jaipur ITAT decision in the case of the assessee’s husband (Shri Ajoy Sharma), the Rajasthan High Court in CIT v. Pushpendra Surana, and the Delhi High Court in Pr. CIT v. Neeraj Jindal, the Tribunal held that concealment must be examined with reference to the return filed pursuant to reassessment. Once the revised/reassessment return is accepted, the original return becomes non-est, and no penalty can be levied in the absence of any concealment in the return accepted by the AO.
The Tribunal rejected the Revenue’s argument that but for reopening the income would not have been disclosed, holding that voluntary and complete disclosure in reassessment proceedings, when accepted without variation, does not attract penalty. Accordingly, penalties for all the years were deleted and the appeals were allowed in full
FULL TEXT OF THE ORDER OF ITAT AMRITSAR
