TaxTMI 
TaxTMI 
2024 (9) TMI 366
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.... out of the penalty order passed under section 271(1)(c) of Income Tax Act, 1961 (in short 'Act') dated 25.03.2022. 2. Brief facts of the case are that, assessee is in the business of construction works filed his return of income admitting the total income of Rs. 22,10,162/-. The return was summarily processed under section 143(1) of the Act. Subsequently, the case was selected for scrutiny and the assessment was completed on 04.03.2015 under section 143(3) of the Act. While framing the assessment the Assessing Officer considered that the assessee has claimed huge labour expenditure amounting to Rs. 2,89,09,008/- and found that these payments are made in cash with no supporting vouchers or bills. Therefore, the Assessing Officer estimate....
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....been initiated, i.e. whether for concealment of particulars of income or for furnishing of inaccurate particulars of income. The Ld. CIT(A) ought to have appreciated the fact that even in the order, it was mentioned that the assessee has concealed income and furnishing inaccurate particulars instead of specifying the limb of said penalty proceedings. 3. Without prejudice, the Ld. CIT(A) erred in not appreciating the fact that, the Ld. AO in the order mentioned that penalty is imposed for furnishing inaccurate particulars of income and satisfaction by virtue of explanation 1 to Sec 271(1)(c) of the Act, without appreciating the fact that Explanation 1 could be invoked only if there is a concealment of income and not furnishing of in....
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....ill not per se amount to furnishing inaccurate particulars of income or , merely because the assessee had claimed expenditure which claim was not accepted or was not acceptable to revenue, that by itself would not attract penalty u/s 271(1)(c)of the Act. 10. The Ld. CIT(A) erred in levying penalty u/s 271(1)(c) of the Act as penalty cannot be levied merely because the assessee has accepted the disallowance made on estimation basis as there is no deliberate attempt to conceal income or to furnish inaccurate particulars of income. 11. The assessee may add, alter, or modify or substitute any other points to the grounds of appeal at any time before or at the time of hearing of appeal. 5. Ld. Authorised Representative [herei....
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....llowance by the revenue is due to the fact that it was not acceptable to the revenue. The Hon'ble Supreme Court in the case of CIT v. UP State Bridge corporation Ltd., (supra) held that where assessee had furnished certain details regarding expenditure as well as in in return, which were not found inaccurate, nor could be viewed as concealment of income on part of assessee, merely because said claim was not accepted or was not acceptable by the revenue, that by itself would not attract penalty under section 271(1)(c) of the Act. Further this Tribunal in the case of Potluri Phanendra Babu v. ITO (supra) held as follows: - "5. ..... Since the addition is made on estimate basis, various judicial pronouncements have held that penalty c....