Appeal allowed, penalty deleted under Income Tax Act technicality

The Tribunal allowed the appeal of the assessee, deleting the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961. The Tribunal held that the penalty was unsustainable as it was imposed without specifying the charge of concealment or inaccurate particulars, as required by the law. Therefore, based on this technical ground, the penalty was deleted, and the appeal was allowed without addressing the merits of the case.

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Issues:
Challenge to imposition of penalty under section 271(1)(c) of the Income Tax Act, 1961 based on concealment of income and furnishing inaccurate particulars of income.

Analysis:
1. The appeal was filed by the assessee against the appellate order of the Commissioner of Income Tax(Appeals) challenging the penalty order passed under section 271(1)(c) of the Income Tax Act, 1961 for Assessment Year 2012-13.
2. The assessee raised grounds of appeal arguing that the penalty imposed was illegal, unlawful, and against natural justice. The appellant contended that the AO erred in not considering explanations and evidence provided. The appellant also disputed the AO's findings regarding concealment of long-term capital gains.
3. The AO observed discrepancies in the property sale value and stamp duty valuation, resulting in unreported long-term capital gains. The penalty proceedings were initiated based on non-disclosure of capital gains in the income tax return.
4. The assessee argued before the CIT(A) that there was no deliberate intention to conceal income and claimed lack of awareness regarding tax provisions. The CIT(A) partially upheld the penalty, emphasizing the non-disclosure of capital gains in the original return.
5. In the second appeal, the AR argued that the penalty was imposed without specifying the charge of concealment or inaccurate particulars. The DR supported the lower authorities' decision.
6. The Tribunal noted that the penalty was imposed without specifying the charge, contrary to the requirements of section 271(1)(c). Citing relevant case law, the Tribunal held that a clear finding on concealment or inaccurate particulars is necessary for penalty imposition. As the charge was not specified, the penalty was deemed unsustainable, and the appeal was allowed.
7. Due to the technical ground for penalty deletion, the Tribunal refrained from addressing the merits of the appeal raised by the assessee.
8. Consequently, the appeal of the assessee was allowed, and the penalty was deleted based on the lack of specific charge in the penalty order.

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