2024 (10) TMI 925

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....ng that the assessee had not filed inaccurate particulars of income without appreciating the fact that the assessee had not offered Short Term Capital Gain u/s. 50 of the Act on sale of depreciable fixed asset as its income in return of income or during the scrutiny proceedings. ?" "2. Whether on the facts and circumstances and in law the Ld.CIT(A) was right in deleting penalty levied u/s. 271(1)(c) of Rs. 2,22,24891/ without appreciating the fact that the assessee offered income under the head STC Gain only after the AO issued specific show and not prior to that and the explanation submitted by the assessee was neither correct nor bonafide as the final accounts of the assessee were subject to tax Audit u/s. 44AB.?" "3. Wh....

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.... Ld.CIT(A) recorded the reasons that led to the disallowance by the Ld.AO. It is observed that the Assessing Officer denied the claim of assessee, since the fixed assets being the land and building that was sold, was neither included in the return of income nor included in the computation of income. The Ld.AO in the assessment order, initiated penalty proceedings under section 271(1)(c) for concealing the particulars of income. During the quantum proceedings before the Ld.CIT(A), the assessee withdrew the ground of the claim pertaining to the short term capital gain. 2.3. The Ld.AO, thus vide notice dated 28/03/2014 proposed to levy penalty under section 271(1)(c) of the Act. In response to the show-cause notice, the assessee responded v....

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.... liquidation and drew our attention to the application by the Liquidator on behalf of the assessee praying to dispose of the legal proceedings against the present assessee vide letter dated 23/11/2018. It s also noted that none was present on behalf of the assessee. Considering the totality of the facts and talking into account the observations of the Ld.CIT(A), rejected any concealment in the case of the assessee, having regards to the records. 2.5. As evident from the aforesaid cl.(c) of s.271(1) of the Act, the words used are "has concealed the particulars of his income;; or, "furnished inaccurate particulars of such income";. In both situation of concealment and inaccuracy, the legislature has used phrase, "particulars of income". Th....