Tribunal upholds deletion of penalty under section 271(1)(c) - Revenue's appeal dismissed

The Tribunal dismissed the Revenue's appeal, upholding the deletion of the penalty under section 271(1)(c) by the ld. CIT(A). The Tribunal found that the income had been declared in the return filed in response to the notice under section 153A, and the case did not fall under Explanation 5A. The decision was supported by legal precedents and factual considerations, leading to the dismissal of the Revenue's appeal.

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Issues:
1. Whether the penalty under section 271(1)(c) of the Income Tax Act was rightly deleted by the ld. CIT(A)Rs.
2. Whether the case falls under Explanation 5A of section 271(1)(c) of the ActRs.
3. Whether the AO's initiation of penalty proceedings was valid and sustainableRs.

Analysis:

Issue 1:
The appeal by Revenue challenged the deletion of the penalty of Rs. 64,49,270 under section 271(1)(c) of the Act by the ld. CIT(A). The Revenue contended that the ld. CIT(A) erred in deleting the penalty and should have upheld the penalty order of the Assessing Officer. The Revenue argued that Explanation 5A of section 271 of the Act applied as the return of income was not filed till the date of search, and the due date for filing had expired.

Issue 2:
The brief facts revealed that the assessee had not filed the return of income for AY 2012-13 under section 139 of the Act. Following a search action, the assessee declared additional income on account of 'on money received' on the sale of Sultanabad land. The AO initiated penalty proceedings under section 271(1)(c) based on this additional income. The AO held that the penalty was justified under Explanation-5A, as the assessee had not disclosed the income in the original return.

Issue 3:
The assessee contended before the ld. CIT(A) that the penalty should be deleted as the return of income was filed in response to the notice under section 153A within the due date. The ld. CIT(A) agreed with the assessee, emphasizing that penalty cannot be imposed if the income has been declared in the return filed in response to the notice under section 153A. The Tribunal affirmed the ld. CIT(A)'s decision, citing relevant case laws and holding that the penalty was not sustainable.

In conclusion, the Tribunal dismissed the Revenue's appeal, upholding the deletion of the penalty under section 271(1)(c) by the ld. CIT(A). The Tribunal found that the income had been declared in the return filed in response to the notice under section 153A, and the case did not fall under Explanation 5A. The Tribunal's decision was supported by legal precedents and factual considerations, leading to the dismissal of the appeal filed by the Revenue.

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