2022 (11) TMI 715

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....ther the Ld. CIT(A) is correct in law in deleting the penalty imposed u/s 271(1)(c) of the Income Tax Act, 1961 particularly when the Assessing Officer had levied penalty after feeling satisfied that the assessee has concealed its income and thus furnished inaccurate particulars of its income." 2. The Appellant reserves right to add, amend or alter, the grounds of appeal on or, before the date of disposal of appeal." 2. The only effective ground in this appeal is against deleting the penalty imposed u/s 271(1)(c) of the Income Tax Act, 1961 (in short "the Act"). 3. Learned DR submitted that he supports the order of the assessing authority. However, the Ld. DR fairly conceded that the learned CIT(Appeals) deleted the penalty o....

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....s been accounted for as income. This fact was no where denied by the Revenue. Thus, the CIT(A) has totally Ignored this aspect and simply on the basis of change of accounting policy which is also changed according to the CAG report which is mandatory for the Assessee Board to follow, confirmed the addition. The same is not justified as the accounting policy principles were thoroughly followed by the Assessee Board and the income was reported for A.Y. 2009-10 which is next assessment year. There is no revenue loss as well. Therefore, the Assessing Officer as well as the CIT(A) was not correct in making addition. Thus, appeal of the assessee being ITA No. 4425/Del/2014 is allowed. 11. Now, we come to the appeal filed by the Revenue. ....