2014 (2) TMI 541

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed by the Assessing Officer imposing penalty under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 2. In the appeal, the following substantial questions of law are proposed by the revenue; (I) Whether, in the facts and circumstances of the case, the learned ITAT has erred in allowing the appeal filed by the respondent assessee against the order of penalty under Section 271(1)(c) of the Income Tax Act, 1961 passed by the Assessing Officer as confirmed by the CIT(A) and thereby ignoring explanation 1 to Section 271(1)(c) of the Act that assessee's explanation was not proved to be bonafide? (II) Whether the Tribunal is right in law and on facts to ignore the provisions of Section 271(B) of the Act inser....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....22 ITR 306 and in the case of New Sorathia Engineering Co. Vs. Commissioner of Income-Tax reported in (2006) 282 ITR 642 (Guj.) the Income Tax Appellate Tribunal has allowed the appeal by quashing and setting aside the orders passed by the CIT(A) as well as the Assessing Officer imposing penalty under Section 271(1)(c) of the Act. 4. Having heard Shri Varun Patel, learned advocate appearing on behalf of the appellant and considering the observations made by the Assessing Officer, while passing the order of penalty, it is not in dispute and/or cannot be disputed that there was no clear finding by the Assessing Officer whether the assessee was guilty of concealing the income or furnishing inaccurate particulars of the income. While consideri....