TaxTMI 
TaxTMI 
2021 (1) TMI 235
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....nd fats in initiating the penalty against the assessee under the provision of Section 271(1)(c) of the Income Tax Act, without understanding the applicability of the stated provisions, where the originally returned income has been accepted in Re-assessment order and Commissioner of Income Tax (Appeals) has failed to appreciate the facts and has confirmed the levy of penalty. ii. Because the Ld. AO has erred in law and on facts in not appreciating that no addition has been made by him in assessment order and originally returned income has been accepted thereby resulting in to no tax demand and Commissioner of Income Tax (Appeals) has fallen in error that there is any tax payable on the income shown to have been added as the result o....
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....ed to appreciate the law and written submission. vii. Order of CIT(A) and AO are bad n law and on facts. viii. Appellant craves your kind permission to add, amend and alter an of the grounds of appeal before or at the time of hearing." (B) In this case, the Assessee filed the return of income on 15.10.2010 declaring income of Rs. 59,67,040/-. The returned income was accepted by Revenue, and the return was not selected for scrutiny. Thus, initially, no Assessment Order was passed. Subsequently, proceedings U/s 147 of IT Act were started on 29.03.2017 by issue of notice U/s 148 of IT Act. The Assessee, vide letter dated 27.04.2017 once again filed a copy of earlier return file on 15.10.2010, and once again showed return i....
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....e Assessing Officer U/s 271(1)(c) of IT Act. The present appeal before us has been filed by assessee against the aforesaid impugned appellate order dated 04.06.2019 of the Ld. CIT(A). Vide order dated 07.02.2020 recorded on Order Sheet of the appeal folder; the assessee's appeal was found to be fit for Early Hearing. In the course of appellate proceedings in Income Tax Appellate Tribunal ("ITAT", for short); a paper book containing the following particulars were filed from the assessee's side: 1. Memorandum of appeal in Form No. 36 in Triplicate. 2. Grounds of Appeal 3. Copy of Order of CIT(A) New Delhi dated 04.06.2019 appealed against 4. Copy of the penalty order passed by the AO 5. Copy of Ass....
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....sides that the returned income of the assessee had been accepted on both occasions firstly, when return was filed on 15.10.2010; and secondly, when Assessment Order dated 29.12.2017 was passed U/s 147 of IT Act. Moreover, we find that the judicial pronouncements on which the Assessing Officer as well as the Ld. Sr. DR have placed reliance are not applicable to the facts of the case because in none of the aforementioned judicial pronouncements, assessed income was same as the returned income. The overall effect of the Assessment Order dated 29.12.2017 was that the head under which the aforesaid amount of Rs. 6,62,000/- was assessed, changed from income under "PGBP" (as shown by the assessee) to addition U/s 68 of IT Act, (as assessed by the ....