Tribunal cancels penalty for revised income calculation under section 271(I)(c)

The Tribunal allowed the assessee's appeal, setting aside the penalty levy under section 271(I)(c) for revising the income computation. The Tribunal found the assessee's actions to be in good faith, without intent to conceal income, leading to the deletion of the penalty.

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Issues:
Levy of penalty under section 271(I)(c) for revised computation of income.

Analysis:
The appeal was against the order of the Ld. CIT-A confirming the levy of penalty under section 271(I)(c) for a sum of Rs. 12,23,908 due to a revised computation of income under 'Income from Other Sources' instead of 'Income from House Property'. The assessing officer initiated proceedings for inaccurate particulars of income and a wrong claim, holding that the assessee concealed taxable income.

Upon hearing both parties, the Tribunal noted that the assessee revised the return by withdrawing the deduction claimed under section 24a without any query on the subject. The assessing officer found the assessee guilty of furnishing inaccurate particulars of income in the assessment order but held that the assessee concealed income in the penalty order. The Tribunal deemed the assessee's conduct as bonafide and not contumacious, setting aside the lower authorities' orders and deleting the penalty levy under section 271(I)(c).

The Tribunal concluded that the assessee's revision of the computation and withdrawal of the deduction under section 24a were done in good faith, without any intention to conceal income. Therefore, the appeal filed by the assessee was allowed, and the penalty was deleted. The order was pronounced in the Open Court on 30/05/2017.

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