2019 (11) TMI 29 - AT - Income Tax

ITAT Rules in Favor of Assessee, Orders Deletion of Penalty Under Income Tax Act for Lack of Deliberate Concealment.

Shri Vipul A. Shah Versus D.C.I.T., Circle-1 (2), Baroda.

Shri Vipul A. Shah Versus D.C.I.T., Circle-1 (2), Baroda. - TMI Issues:1. Penalty under section 271(1)(c) of the Income Tax Act.Analysis:1. The appeal was filed by the Assessee against the order of the Commissioner of Income Tax (Appeals) confirming the penalty under section 271(1)(c) of the Act. The assessment was for the year 2008-2009.2. The Assessee, engaged in real estate consultancy and a director in a company, had additions made to the income by the Assessing Officer (AO). The Commissioner deleted some additions but confirmed others, leading to the penalty notice under section 271(1)(c) for concealment of income.3. The Assessee argued that the additions were based on debatable issues and were admitted to avoid litigation. However, the AO disagreed, alleging income suppression and levied the penalty.4. Before the Commissioner, the Assessee provided explanations for the additions, including cash deposits and profits from sales. The Commissioner upheld the penalty, citing lack of evidence from the Assessee.5. The Tribunal noted that major additions were deleted by the Commissioner, and the Assessee had provided explanations and evidence for the remaining amounts. The Tribunal found no deliberate concealment of income by the Assessee.6. Referring to a Supreme Court judgment, the Tribunal emphasized that deliberate acts for concealment must be proven. As there was no deliberate intention to conceal income, the Tribunal set aside the penalty imposed by the AO.7. The Tribunal allowed the appeal of the Assessee, directing the AO to delete the penalty under section 271(1)(c) of the Act. The decision was based on the lack of deliberate concealment of income by the Assessee.8. The Tribunal pronounced the order in Ahmedabad, allowing the appeal of the Assessee on 01/10/2019.