ITAT rules penalty without evidence not justified under section 271(1)(c). Penalty deleted for all assesses.

The ITAT allowed the appeal, ruling that penalty imposition under section 271(1)(c) without incriminating evidence is not justified. The penalty was deleted for all assesses involved in the case, following the same reasoning. The judgment was delivered on 19/07/2019 in Ahmedabad by the Appellate Tribunal ITAT Ahmedabad.

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Issues Involved:
- Appeal against penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 for different Assessment Years.

Detailed Analysis:
1. Issue 1: Confirmation of Penalty by CIT (A)
- The assessee contested the penalty imposed due to the difference in income declared in returns filed under sections 139 and 153A of the Act.
- A search under section 132 revealed a variance in income declared by the assessee in the two returns.
- The AO initiated penalty proceedings based on this difference, leading to a penalty of Rs. 1,54,070 under section 271(1)(c).
- The CIT (A) upheld the penalty, citing concealment of income by the assessee.
- The AR argued against penalty imposition, referencing a Gujarat High Court judgment.

2. Issue 2: Lack of Incriminating Evidence
- The ITAT analyzed whether penalty under section 271(1)(c) could be applied solely based on the statement furnished under section 132(4) without incriminating documents found during the search.
- The ITAT referred to a case where penalty was deleted due to the absence of incriminating evidence.
- Based on this precedent, the ITAT held that penalty under Explanation 5A to section 271(1)(c) cannot be imposed without incriminating documents.
- Consequently, the penalty was deleted in the present case as no such incriminating evidence was found.

3. Conclusion:
- The ITAT allowed the appeal, stating that penalty imposition without incriminating evidence is not justified under section 271(1)(c).
- The penalty was deleted for all appeals filed by different assesses, following the same reasoning.
- The judgment was pronounced on 19/07/2019 in Ahmedabad by the Appellate Tribunal ITAT Ahmedabad.

This detailed analysis covers the issues involved in the appeal against the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 for different Assessment Years, providing a comprehensive overview of the judgment's key points and legal arguments presented.

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