TaxTMI 
TaxTMI 
2023 (6) TMI 1034
X X X X Extracts X X X X
X X X X Extracts X X X X
.... concealment of income." 3. The ld counsel of the assessee submitted that the ld CIT(A) has erred and was not justified under the facts and circumstances in upholding the penalty of Rs. 99,760/- u/s 271(1)(c) of the Income Tax Act, 1961 (for short 'the Act') as there was no concealment of income by the assessee. The ld counsel drawing our attention towards various orders of coordinate bench of the Tribunal including order of ITAT Bengalore Bench in the case of ITO Vs. M Narayanswami order dated 09.02.2010 in ITA No. 723/Bang/2010 for AY 2002-03 submitted that the quantum order of the Tribunal was decided in favour of the revenue was based on interpretation of provision of section 54F of the Act after considering the various judicial pron....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Vs. M Narayanswami (supra), under identical facts and circumstances held as follows:- "5. We have heard rival submissions and perused material on record. So far as the material particulars are concerned on the question of exemption, it was nowhere held by the Tribunal that the assessee had concealed any particulars of income. Eventually the order of the Tribunal, which was decided in favour of the department, was based on interpretation of the provisions of Section 54F after considering the various judgments and in particular its own decision in the case of D Ananda Basappa (91 ITD 53). 5.1 The assessee has furnished all particulars on facts and in law. Nowhere has the AO said that the particulars furnished by the assessee....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... his income or furnishes inaccurate particulars thereof. But by reason of such concealment or furnishing of inaccurate particulars alone, the assessee does not ipso facto become liable for penalty. Imposition of penalty is not automatic. Not only is the levy of penalty discretionary in nature but the discretion is also required to be exercised on the part of the Assessing Officer keeping the relevant factors in mind. Some of those factors, apart from being inherent in the nature of penalty proceedings, inhere on the face of the statutory provisions. Penalty proceedings are not to be initiated merely to harass the assessee. The approach of the Assessing Officer in this behalf must be fair and objective." 5.3 Taking into account the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a provision based on various judgments of the Hon'ble High Court and the orders of the Tribunal. 5.5 In light of the above, we are of the view that the CIT(A) is justified in deleting the penalty and we see no reason to interfere with the same." 6. In view of the above, when I evaluate the facts and circumstances of the present case then I find that the AO in quantum proceedings dismissed excess claim of assessee amounting to Rs. 4,84,284/- u/s 54 of the Act and the assessee did not carried the matter further and accept the orders of the tax authorities below. However, the AO proceeded to initiate the penalty proceedings u/s 271(1)(c) of the Act and imposed penalty by holding that the assessee has no explanation regarding concea....