TaxTMI 
TaxTMI 
2019 (3) TMI 583
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....der Section 271(1)(c) of the Act? II. Without prejudice to above, whether on the facts and in the circumstances of the case and in law, the CIT (A) was justified in reducing penalty relatable to excess claim of exemption u/s 54EC of the Act?" 2. The principle dispute of the revenue in this appeal relates to the judgment of the Tribunal deleting penalty imposed by the Assessing Officer against the respondent-assessee under Section 271(1)(c) of the Income Tax Act, 1961 ("the Act" for short). 3. Case of the revenue is that the assessee had earned sizable income, which should have been offered to the tax by way of capital gain, which in the return of income filed by the assessee for the assessment year 2010-11, assessee had not done. ....
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....ispute that no information given in the return was found to be incorrect or inaccurate. Merely because the claim put forth by the assessee was found to be unsustainable in law, in the opinion of the Tribunal penalty would not necessarily attach. In this context, the Tribunal relied on the decision of the Supreme Court in case of Commissioner of Income Tax, Ahmedabad Vs. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR 158(SC). The Tribunal also noted that before filing the return, the assessee had obtained an opinion of the Chartered Accountant why the receipt in question was not exhibitable to tax. Primarily, on such grounds, the Tribunal deleted the penalty and allowed the assessee's appeal. 4. Appearing for the revenue, learned couns....
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....the revenue either before the CIT (Appeals) or the Tribunal, during the assessment proceedings undoubtedly the assessee had made full representation why according to his belief the receipt was not chargeable to tax. Merely because the Assessing Officer did not accept such a stand of the assessee, would not automatically permit revenue to levy penalty. So much, it made abundantly clear by the Supreme Court through series of judgments particularly in case of Reliance Petroproducts Pvt. Limited (supra). Further, the reference to the Chartered Accountant's opinion in favour of the assessee made by the Tribunal also cannot be discarded. We do not find any assertion of the revenue at any stage of the proceedings that no such opinion existed. ....