The Pune bench of the Income Tax Appellate Tribunal (ITAT) ruled that tax penalty u/s 271 would not be imposed in the absence of applicable records for the incorrect particulars.
The company of the petitioner is engaged in the business manufacturing and the sale of the chemicals. The income tax return was furnished on the date 24/09/2012 showing a total income of Rs 2,08,86,861. The assessing officer passed order u/s 143(3) of the Income Tax Act, 1961 at a total income of Rs.2,13,79,180 post to making a disallowance of Rs.3,66,172 on the basis of group gratuity payment and disallowance of Rs.1,26,142 on the grounds of before duration expenses.
A show-cause notice is being issued by the assessing officer specifying the penalty proceedings u/s 271(1)(c) and the taxpayer answered specifying that the addition relied on the admission incurred in the course of assessment proceedings and the same was only a bonafide error.
The taxpayer specified that there was no deliberate intention to conceal the prior duration expenses. The AO refused the taxpayer’s point and imposed a fine of Rs.41,000/- u/s 271(1)(c) of the Act. on the petition, CIT(A) has confirmed the levy of a penalty refusing the petitioner’s point that the assessing officer loses to record the satisfaction by taking the appropriate limb of the show cause notice. The revenue specified that the addition was approved by the taxpayer during the assessment proceedings on the question asked by the assessing officer.
It was seen that the penalty was imposed for filing the incorrect particulars of the income for the addition of the former duration expenses of Rs 1,26,142. “The tribunal observed that the Assessing Officer had failed to give a finding as to what kind of particulars filed by the assessee is found to be inaccurate or false.”
The Coram consists of Shri Inturi Rama Rao, AM, and Shri Partha Sarathi Chaudhury, JM sees that the addition incurred is on the grounds of the details furnished by the taxpayer excluding any finding recorded and rendered the assessing officer to delete the fine of Rs 41,000 imposed penalty under section 271(1)(c) of the Act. the petitioner furnished via taxpayer was permitted. The taxpayer was shown by Shri Pramod S. Shingte the revenue was shown by Shri S. P. Walimbe.
