Merely because assessee did not filed appeal against addition it cannot be a ground for imposing penalty – ITAT
ABCAUS Case Law Citation:
ABCAUS 3766 (2023) (06) ITAT
Important Case Laws relied upon:
Rajiv Kumar Garg vs. ITO
CIT vs. Aero Traders (P) Ltd.
Harigopal Singh vs. CIT (2002) 258 ITR 85 (P&H)
Vishnu Tambi v. DCIT
CIT vs. Subhash Trading Company 221 ITR 110 (Guj)
In the instant case, the assessee had challenged the order passed by the CIT(A) in sustaining the penalty u/s 271(1)(c) of the Income Tax Act, 1961 (the Act) as imposed by the Assessing Officer (AO) on account of estimated profits.
In quantum proceedings, the said addition had been made on estimate basis by applying the Gross Profit rate on the sales appearing the bank account of the assessee.
The Tribunal stated that it is a trite law that any addition made on account of estimated rate of profit applied to the turnover does not amount to concealment.
The Tribunal observed that in the penalty order, the AO had stated that since the appellant had not filed any appeal against the additions, it shows that the appellant had no plea to offer and concluded that the above transaction was concealed.
The Tribunal opined that merely because the assessee had not filed any appeal against the addition, it cannot be a ground for imposing penalty. This cannot at all lead to a conclusion that the levy of penalty is automatic when addition is not appealed against or for that matter it is sustained. There can be many reasons due to which an assessee may choose not to file an appeal, for example, for want of proper legal advice.
The ITAT also pointed out that settled law is that the assessment proceedings and the penalty proceedings are different.
Keeping in view, the entire facts and circumstances the Tribunal held that the penalty levied by the Assessing Officer could not be sustained.
Accordingly, the appeal of the assessee was allowed.
E-way bill expired due to vehicle break down only a technical breach and non extension of its time period cannot…
No rejection of GST appeal for mere non filing of certified copy of the decision as per rule 108 of…
Comparison Chart for Bank Fixed Deposit Interest rates of Public Sector and Private Sector Banks A comparison Chart for Bank…
GST Form SRM-I enabled for manufacturers of Pan Masala and Tobacco. Form GST SRM-II will also be made available on…
Prosecution for late deposit of TDS stayed by High Court in view of judgment of the Hon'ble Supreme Court In…
Unless, discrepancy is found in physical quantities, assessee agreeing to increase stock value does not amount to undisclosed stock u/s…