Appeal allowed, penalty deleted under Section 271(1)(c) for AY 2014-15. No conscious concealment found.

The ITAT allowed the appeal and directed the deletion of the penalty under Section 271(1)(c) of the Act for Assessment Year 2014-15. The delay in filing the appeal was condoned due to misplaced documents, and it was noted that the revised return was filed before reasons for re-opening the assessment were provided. The ITAT found that the penalty was not justified as there was no evidence of conscious concealment of income, referencing judicial precedents supporting the deletion of penalties in similar cases.

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Issues involved:
The appeal against the order passed by the Ld. Commissioner of Income Tax(Appeals) confirming the penalty u/s. 271(1)(c) of the Act for Assessment Year 2014-15.

Details of the Judgment:

1. Delay in filing the appeal:
The appeal was time-barred by 684 days due to misplaced documents by the accountant-cum-clerk. The delay was condoned after considering the reasons provided.

2. Initiation of penalty proceedings:
The penalty proceedings were initiated against the assessee for filing a revised return after the issuance of notice under Section 148 of the Act. The Assessing Officer held that the assessee concealed income to evade tax, leading to the levy of a penalty of Rs. 3,15,000.

3. Arguments and Contentions:
The assessee contended that the revised return was filed before the reasons for re-opening the assessment were provided. The claim of deduction under Section 35 of the Act was withdrawn to avoid litigation, as the donee institute was registered at the time of donation.

4. Observations and Decision:
The ITAT observed that the registration of the institute was valid during the assessment year, and the reasons for re-opening were not known to the assessee when the return was filed. Citing judicial precedents, the ITAT concluded that the penalty was not justified and directed the deletion of the penalty under Section 271(1)(c) of the Act.

5. Judicial Precedents:
The ITAT referred to various judgments supporting the deletion of penalties in cases where amounts were surrendered to avoid litigation or for peace. The decision was based on the lack of evidence showing conscious concealment of income.

6. Final Decision:
The ITAT allowed the appeal of the assessee and directed the deletion of the penalty under Section 271(1)(c) of the Act.

This Order was pronounced in Open Court on 13/09/2023.

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