No Penalty 271(1)(c) if primary information furnished with return of income as held by Supreme Court

No Penalty 271(1)(c) if primary information is furnished with ITR as held by Supreme Court in the case of Reliance Petroproducts Pvt Ltd-ITAT

ABCAUS Case Law Citation:
ABCAUS 1065 (2016) (11) ITAT

Assessment Year: 2008-09
Date of Judgment: 28-11-2016

Important Case Laws cited:
Reliance Petroproducts Pvt Ltd

Brief Facts of the Case:
The appellant assessee had filed his return of income declaring total income at Rs.8,75,217/- against which the claim for TDS and deduction u/s 80-U under Chapter VI-A was made. However in the return of income, the assessee had not disclosed the interest income, however, relevant information was furnished as mentioned in TDS certificate.

The Assessing Officer completed the assessment by making disallowance u/s 80-U and adding interest income which were accepted by the assessee. The AO also initiated penalty proceedings u/s 271(1)(c) for the concealment of income. The assessee submitted that the relevant information in respect of both these additions was filed alongwith the return of income and the mistake was bona fide. The AO, however, imposed the penalty.

CIT(A) confirmed the penalty in question.

Observations made by the Tribunal:
The Tribunal observed that the CIT-(A) ought to have considered the Supreme Court judgment in the case of Reliance Petroproducts Pvt Ltd., wherein it was held that if the primary information was furnished by the assessee alongwith return of income, then penalty u/s 271(1)(c) cannot be imposed.

It was noted that the fact that the assessee filed TDS certificate which contained particulars about the interest earned and TDS thereon was not disputed. Thus, the mistake was betided by AO based on the information furnished by the assessee along-with return of income. Similarly, the relevant particulars of claim u/s 80-U were also filed alongwith the return of income.

The ITAT opined that in view of these facts and circumstances of the case and in accordance with Supreme Court judgment in the case of Reliance Petroproducts Pvt Ltd, it was not a fit case to impose penalty u/s 271(1)(c) of the Income Tax Act, 1961.

Held:
Appeal of the assessee allowed and penalty was deleted.