Appeal allowed, penalty deleted for A.Y. 2002-03. Previous case precedent cited.

The ITAT allowed the assessee's appeal, deleting the penalty imposed under section 271(1)(C) for A.Y. 2002-03. The ITAT referred to a previous case involving a co-owner where penalty was deleted due to the assessee disclosing correct income before detection by the department, finding no fraud or neglect in the present case.

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Issues:
Assessee's appeal against penalty u/s. 271(1)(C) for A.Y. 2002-03.

Analysis:
1. The assessee filed a return of income showing total income of Rs.86,299, later filed an application u/s. 273A disclosing Long Term Capital Gain. Assessing Officer reopened assessment u/s. 147, determined total income at Rs.15,85,860, and initiated penalty proceedings u/s. 271(1)(C).
2. Assessee contended good faith disclosure and tax discharge, requesting penalty waiver. AO levied penalty of Rs.3,11,542. CIT(A) confirmed AO's action despite the assessee's submissions.
3. Assessee cited a similar case where penalty on identical facts was deleted by ITAT, involving co-owner of the land. Assessee sought penalty deletion based on the precedent.
4. ITAT referred to the previous case involving co-owner, where penalty was deleted due to the assessee disclosing correct income before detection by the department. ITAT found no fraud or neglect, deleting the penalty imposed by AO and confirmed by CIT(A).
5. Consequently, ITAT allowed the assessee's appeal, deleting the penalty imposed under section 271(1)(C) for A.Y. 2002-03.

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