2022 (5) TMI 372

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.... "1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A) has erred in confirming the action of assessing officer in imposing penalty of Rs. 3,38,136/- u/s 271(1)(c) of the I.T. Act, 1961. 2. It is therefore, prayed that addition made by assessing officer & confirmed by Commissioner of Income Tax (Appeals) may kindly be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Brief facts of the case are that the Assessing Officer while passing the assessment order for assessment year (A.Y.) 2014-15 made addition of Rs. 12,60,684/- on account of long term capital gain. The Assessing Officer while maki....

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....evidences and was transacted through banking channel. The assessee and her family member decided to take the benefit of IDS scheme. However, it was the assessee could not take the benefit of IDS as her case was selected for scrutiny and notice under Section 143(2) of the Act has already been issued. The assessee during the course of assessment, surrendered the exemption and shown entire receipts as income from other sources and paid due taxes thereon. The revised computation furnished by assessee was accepted by the Assessing officer. The Assessing Officer imposed penalty on the assessee. The assessee also stated that no concealment was detected by the department. The long term capital gain was not subject matter of scrutiny assessment. The....

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....e (DR) of the revenue. The ld. AR of the assessee submits that no concealment was detected nor any show cause notice on the issue of long term capital gain was issued by the Assessing officer during the assessment. The assessee on her own, surrendered long term capital gain and paid due tax alongwith interest. The assessee filed revised computation. The revised computation was accepted by the Assessing officer. In fact, the assessee wishes to take the benefit of IDS Scheme, however, the benefit of IDS Scheme could not be availed as the case of assessee was already selected for scrutiny. The assessee made transaction through banking channel and received the sale proceed of shares after deduction of STT. The assessee was having sufficient doc....

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....capital gain of penny stock. When the case of assessee was selected for scrutiny, she surrendered these amounts on the pretext to buy peace of mind and to avoid litigation. Once the addition is made in the income of assessee, the penalty is inevitable. The assessee was very well aware that the limited scrutiny could be converted into full-fledged scrutiny. Various case laws relied by the ld. AR of the assessee are not applicable on the facts of the present case. 7. We have considered the rival submissions of both the parties and have gone through the orders of lower authorities. It is not in dispute that during the assessment the assessee filed revised computation of income and surrendered the long term capital gain. It is also undispute....