2016 (12) TMI 554

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....efore the learned CIT(A) arising from the penalty order dated 28th June 2012 passed by the learned Assessing Officer (hereinafter called "the AO") u/s 271(1)(c) of the Income Tax Act,1961 (Hereinafter called "the Act"). 2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called "the Tribunal") read as under:- "1. On the facts and the circumstances of the appellant's case and in law the ld. CIT(A) erred in confirming the penalty imposed by the Assessing Officer u/s 271(1)(c) of the Income Tax Act,1961 amounting to Rs. 1,59,130/- on the disallowance on account of Rule 8D r.w.s. 14A." 3. The Brief facts of the case are that the assessee is engage....

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....sessee, vide assessment order dated 15.2.2011 passed by the AO u/s 143(3) of the Act. The assessee did not file appeal against the assessment order dated 15.2.2011 passed by the AO u/s 143(3) of the Act in quantum assessment proceedings which attained finality. The penalty proceedings u/s 271(1)(c) of the Act was initiated against the assessee by the AO for furnishing of inaccurate particulars of income which culminated in levying of penalty of Rs. 1,59,130/- against the assessee u/s 271(1)(c) of the Act by the AO vide penalty orders dated 28.06.2012 passed by the AO for furnishing of inaccurate particulars of income in the return of income filed by the assessee with the Revenue. During the penalty proceedings , the assessee submit....

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....ittal (2001) 251 ITR 9(SC) (b) T.Ashok Pai v. CIT (2007) 292 ITR 11(SC) (c) Dilip & Shroff v. JCIT (2007)291 ITR 519(SC) Thus, the assessee prayed that no penalty be levied against the assessee u/s 271(1)(c) of the Act as in the opinion of the assessee there is no concealment of particulars of income nor there is furnishing of inaccurate particulars of income by the assessee in the return of income filed with the Revenue to be brought within the four corners of penalty provisions as stipulated u/s 271(1)(c) of the Act. The above contentions were rejected by the AO and it was held that the assessee has furnished inaccurate particulars of income and penalty of Rs. 1,59,130/- was levied by the AO on the assessee u/s 271....

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....The learned CIT(A) held that these is an element of strict liability on the assessee for concealment for giving inaccurate particulars of income while filing the return of income with the Revenue. Thus, the learned CIT(A) confirmed the penalty as levied by the AO vide appellate order dated 07-02-2013. 5. Aggrieved by the appellate order dated 07-02-2013 passed by learned CIT(A) , the assessee preferred second appeal with the Tribunal. 6. None appeared before us on behalf of the assessee when the appeal was called for hearing. The learned DR relied on the orders of the authorities below. 7. We have heard the learned DR and gone through the orders of the authorities below including case laws referred to in the orders of the authoriti....

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....me which is the mandate of Section 14A of the Act or coming to a conclusion that it is not possible from the accounts maintained by the assessee to work out disallowance of expenditure as are incurred for earning exempt income before proceeding to apply Rule 8D of Income Tax Rules, 1962. No such finding is recorded by the AO that he made an attempt/effort to scrutinize the books of accounts and records of the assessee to identify the actual expenditure incurred by the assessee in relation to the earning of exempt income before invoking Rule 8D of Income Tax Rules, 1962 read with Section 14A of the Act. The assessee accepted the assessment order passed by the AO u/s 143(3) of the Act whereby no appeal was filed by the assessee against the ad....