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The Tax PublishersIT Appeal Nos. 353 To 356 of 2008 2009 TaxPub(DT) 0667 (P&H-HC) : (2009) 313 ITR 0256 : (2009) 224 CTR 0321 : (2008) 175 TAXMAN 0184 : (2009) 018 DTR 0152 CIT v. Rajiv Garg INCOME TAX ACT, 1961 Penalty under section 271(1)(c) - Furnishing of inaccurate particulars of income-Capital gain on sale of shares Assessee had filed return declaring capital gain on sale of shares. AO did assessment under section 143(1)(a). Subsequently, AO issued notice under section 148 on ground that sale of shares on which capital gain had been declared by assessee was bogus. Assessee filed revised return surrendering entire amount of sale proceeds of shares allegedly in order to buy peace of mind. AO framed assessment on basis of revised return and imposed penalty under section 271(1)(c). Held: AO had not placed on record any material or evidence to discharge his burden of proving concealment and he had simply rested his conclusion on act of assessee of having offered additional income in the revised return filed in response to the notice issued under section 148. The additional income so offered by the assessee was done in good faith and to buy peace of mind. Therefore, penalty levied under section 271(1)(c) was not justified. Income-tax Act, 1961, Section 271 (1)(c) A.Y.: 1998-99 Decision: In favour of assessee. Case Law Analysis:CIT v. Suresh Chandra Mittal [2001] 251 ITR 9/ 119 (SC), CIT v. Suresh Chandra Mittal [2000] 241 ITR 124 (MP) CIT v. Rajiv Garg SUBSCRIBE FOR FULL CONTENT

The Tax PublishersIT Appeal Nos. 353 To 356 of 2008
2009 TaxPub(DT) 0667 (P&H-HC) : (2009) 313 ITR 0256 : (2009) 224 CTR 0321 : (2008) 175 TAXMAN 0184 : (2009) 018 DTR 0152

CIT v. Rajiv Garg

INCOME TAX ACT, 1961

Penalty under section 271(1)(c) - Furnishing of inaccurate particulars of income-Capital gain on sale of shares

Assessee had filed return declaring capital gain on sale of shares. AO did assessment under section 143(1)(a). Subsequently, AO issued notice under section 148 on ground that sale of shares on which capital gain had been declared by assessee was bogus. Assessee filed revised return surrendering entire amount of sale proceeds of shares allegedly in order to buy peace of mind. AO framed assessment on basis of revised return and imposed penalty under section 271(1)(c). Held: AO had not placed on record any material or evidence to discharge his burden of proving concealment and he had simply rested his conclusion on act of assessee of having offered additional income in the revised return filed in response to the notice issued under section 148. The additional income so offered by the assessee was done in good faith and to buy peace of mind. Therefore, penalty levied under section 271(1)(c) was not justified.

Income-tax Act, 1961, Section 271 (1)(c)

A.Y.: 1998-99
Decision: In favour of assessee.

Case Law Analysis:CIT v. Suresh Chandra Mittal [2001] 251 ITR 9/ 119 (SC), CIT v. Suresh Chandra Mittal [2000] 241 ITR 124 (MP)

CIT v. Rajiv Garg