2020 (5) TMI 405

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....hich was opened against the law u/ s 263 of the Income Tax Act, 1961 and not considered by Hon CIT(A). The assessee has not concealed any income. Penalty u/ s 271 (1)(c) is illegally imposed by the Hon AO which is bad- in- law and unjustified. It may be noted that Hon AO during the assessment proceedings u/ s 143 (3) agreed with our submissions and hence had not initiated the penalty proceedings u/s 271 (1)(c) of the Income Tax Act, 1961. Later on, the penalty proceedings u/ s 271 (1)(c) of the Income Tax Act was initiated illegally by a direction u/ s 263 of the Income Tax Act, 1961. 2. ESOP income of Rs. 9, 48, 230 /- is a non-cash income, which has been depicted in 26 AS and was not mentioned in salary certificate issued by the employe....

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.... as under: " The fact of the additional income of Rs. 14,61, 332/- in our submission includes as follows: ESOP- Salary from PEL Rs. 9,43,230.00 Salary difference of PHL Et Abbott Rs. 4,74,697.00 Bank Interest (difference) Rs. 38,158.00 Total Rs. 1461332.00 Now, Rs. 9,48,230/- is a non-cash transaction of ESOP and on which TDS of Rs. 2,93,005 /- has been deducted by Piramal Enterprises Limited and deposited to the Income Tax Department. The same was not in the knowledge of the assessee as the assessee had left the job during the year and was not associated with the company during the year. Therefore, non- cash ESOP income u/s 17(3) is not reflected in our return at the time of filing of the return. However, on reconciliation with....

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....to filed a revised return in first hearing with Hon.AO. Therefore, initiation of penalty u/s 271(1)(c) is ne& applicable as the Hon AO was convinced with the facts of the situation at the time of assessment. The difference of Rs. 247/- in the amount of interest was due to unavailability of complete bank statement at the time of filing the return of income. The assessee was under the impression that interest on savings bank was an exempt income u/s 80 L. Therefore, initiation of penalty u/ s 271 (1)(c) is not applicable as the Hon. AO was convinced with the facts, of the situation at the time of assessment. As mentioned in your notice, wherein A) " Such person fails to offer an explanation or offers an explanation which is found by the....

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....ncomes which come to our knowledge. The assessee has changed three jobs and has during the job periods, all tax has been deducted at source. He continuously use to reside, outside during the course of job. He filed his return of income through consultants on the basis of Form No. 16 and TDS and without the knowledge of ESOP and some differences of salary in reconciliation of salary slips on which TDS already deducted because he was on outstation job. He has no intention of Concealment of tax he paid all the tax dues suo- moto as a responsible citizen. There are various case laws which supports our submission that there is no deliberately default, concealment of income and we have not surrendered in the pressure of AO. It is our submission....