The Tax Publishers2019 TaxPub(DT) 1116 (Mad-HC)

INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) could not be imposed on assessee merely because assessee agreed for addition and accordingly, assessment order was passed making addition in the absence of any material on record to show the concealment of income.

Penalty under section 271(1)(c) - Concealment of income - Surrendering of amount by assessee -

Tribunal by its order set aside the penalty imposed on assessee on the ground that the notice issued to assessee at the very commencement of the penalty proceedings was vitiated and not sustainable in the eye of law. Held: Merely because assessee agreed for addition and accordingly, assessment order was passed making addition and when assessee paid the tax and the interest thereof in the absence of any material on record to show the concealment of income, it could not be inferred that the said addition was on account of concealment, so as to levy penalty under section 271(1)(c). Thus, no error was found in the order of Tribunal

Followed:CIT & Ors. v. M/s Manjunatha Cotton & Ginning Factory & Ors. (2013) 359 ITR 565 (Karn) : 2014 TaxPub(DT) 0202 (Karn-HC) M/s. Original Kerala Jewellers v. Dy. CIT [I.T.A. Nos.2987 & 2988/CHNY/2017 /Assessment years : 2008-09 & 2010-2011, dt. 5-3-2018]

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2008-09



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