2017 (12) TMI 1468

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....t confirmed by the Ld. CIT (A) of Rs. 222142/-. This is the only issue involved in this appeal. "The Appellant prefers following grounds in appeal against the order dated November 9, 2015 passed by the Commissioner of Income-tax (Appeals)-IV, New Delhi [hereinafter referred to as "CIT(A)"] under Section 250 of the Income Tax Act, 1961 [hereinafter referred to as "Act"]. 1.0 That the order passed by the Ld. CIT(A) dismissing the appeal filed by the Appellant ignoring the submissions made before the Ld. AO, provision of law and judicial precedents is bad in law and is liable to be quashed; 2.0 That on the facts and circumstances of the case, the Ld. CIT(A) erred in confirming penalty @ 100% levied by the Ld. AO in r....

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.... to the provision of bad and doubtful debts of Rs. 244783 and Rs. 474126/- on account of liability is no longer required. The assessee agreed to these additions during the course of assessment proceedings itself. Therefore, admittedly, the assessee did not filed any appeal before the higher forum. Therefore, the Ld. assessing officer issued show cause notice for levy of penalty for inaccurate particulars of income furnished by the assessee. 4. The assessee submitted reply dated 19/6/2014. In response to the notice dated 10/6/2014. The assessee submitted that that the assessee has suo Moto offered the above sum which have been claimed as deduction inadvertently in its return of income. The explanation of the assessee was rejected and levi....

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....nt order, which were assessee voluntarily agreed no penalty can be levied even if the assessee has not filed appeal before the higher forum . He further pointed out that the Ld. assessing officer in the assessment order has initiated penalty on account of furnishing of inaccurate particulars of total income, whereas in the penalty order. He levied penalty for the purposes of furnishing inaccurate particulars of income as well as for concealment of the total income. Therefore, he argued that AO is not at all aware about the specific charge against the assessee, therefore, he submitted that penalty proceedings initiated are erroneous. He further submitted that the order of the Ld. CIT (A) is also not proper in confirming the penalty merely on....

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....ble Karnataka High Court in 359 ITR 565, has held that:- "Conclusion 63. In the light of what is stated above, what emerges is as under : (a) Penalty under section 271(1)(c) is a civil liability. (b) Mens rea is not an essential element for imposing penalty for breach of civil obligations or liabilities. (c) Willful concealment is not an essential ingredient for attracting civil liability. (d) Existence of conditions stipulated in section 271(1)(c) is a sine qua non for initiation of penalty proceedings under section 271. (e) The existence of such conditions should be discernible from the assessment order or the order of the appellate authority or the revisional authority. ....

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....tion is offered or the explanation offered is found to be false or when the assessee fails to prove that the explanation offered is not bona fide, an order imposing penalty could be passed. (m) If the explanation offered, even though not substantiated by the assessee, but is found to be bona fide and all facts relating to the same and material to the computation of his total income have been disclosed by him, no penalty could be imposed. (n) The direction referred to in Explanation 1(B) to section 271 of the Act should be clear and without any ambiguity. (o) If the Assessing Officer has not recorded any satisfaction or has not issued any direction to initiate penalty proceedings, in appeal, if the appellate author....