Concealment penalty deleted as assessee was not habitual defaulter, made surrender only to buy peace and did not contest the issue further in quantum proceedingsÂ
ABCAUS Case Law Citation:
ABCAUS 3254 (2020) (02) ITAT
In the instant case, the appeal was filed by the appellant assessee against the order of the Commissioner of Income Tax (Appeals) on the ground that the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 (the Act) was bad in law.
The assessee was an individual engaged in the business of trading of clothes. In the year under consideration, the subject matter of contention was the surrender made by the assessee out of commission expenses claimed to have been paid to different persons.
During the proceedings before the Tribunal, the assessee was required to address whether he was a habitual defaulter. It was stated in response thereto that it was the first time that the assessee was visited with penalty and it was his submission that the surrender was made only to buy peace and it is not a case of concealment of income or furnishing of inaccurate particulars of income.
The Tribunal noted that the assessee in terms of surrender did not contest the issue further in the quantum proceedings under the stated plea of abiding by the stand that the surrender was for buying peace. The said claim was not considered by the tax authorities.
The Tribunal considering the peculiar facts and circumstances of the case in the light of the facts on record that the assessee was not a habitual defaulter, quashed the penalty.
Download Full Judgment Click Here >>
- Form 26 to replace Form 3CD of tax audit report by a CA from Tax Year 2026-27
- When no addition is made on the basis of reasons recorded, reopening is bad in law
- No separate compensation for loss of love and affection under MV Act – SC
- Trust accredited by National Open School eligible for registration u/s 12AB & u/s 80G
- Delay in furnishing Form 10B – Covid Period to be excluded as per decision of Supreme Court
