ITAT Kolkata grants stay on penalties for voluntary income disclosure under Income Tax Act

The Appellate Tribunal ITAT Kolkata considered stay petitions against penalties imposed under section 271(1)(c) of the Income Tax Act for multiple assessment years. The assessee voluntarily disclosed income from bank accounts before a search, with assessments accepting the returned income. Despite the Revenue's argument that the disclosure was search prompted, the Tribunal acknowledged the disclosure, granted a payment scheme requiring the assessee to pay 25 lakhs by a specified date with monthly instalments. The stay petitions were allowed, and the appeals were set for an early hearing.

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Issues involved: Stay petitions against penalty u/s. 271(1)(c) of the Act for multiple assessment years.

Summary:
The Appellate Tribunal ITAT Kolkata considered stay petitions filed by the assessee against penalties imposed by the AO and confirmed by the CIT(A) u/s. 271(1)(c) of the Act for various assessment years. The assessee had voluntarily disclosed income from five bank accounts before a search was conducted, and assessments were completed accepting the returned income. The assessee argued that no penalty should be levied as the disclosed income was accepted and taxes were paid before the search. The assessee proposed to pay &8377; 25 lakhs against the total demand for penalties by a specified date. The Revenue opposed granting the stay, claiming the disclosure was prompted by the search.

The Tribunal, without delving into the merits of the penalty, acknowledged the assessee's disclosure and acceptance of the income from bank accounts. It granted a payment scheme, directing the assessee to pay &8377; 25 lakhs by a certain date and subsequent monthly instalments. The appeals were scheduled for an early hearing. Consequently, the stay petitions were allowed, and the order was pronounced in open court.

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