2024 (10) TMI 1765

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.... ORDER Per B.M. Biyani, A.M.: Feeling aggrieved by revision-order dated 14.03.2024 passed by learned Pr. Commissioner of Income-Tax (Central), Bhopal ["PCIT"] u/s 263 of Income-tax Act, 1961 ["the Act"] which in turn arises out of assessment-order dated 18.09.2021 passed by learned DCIT, Central Circle-2, Bhopal ["AO"] u/s 143(3) of the act for Assessment-Year ["AY"] 2019-20, the assessee ha....

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....ted returned income of assessee but, however, taxed the surrendered income of Rs. 33,86,608/- as per higher rate of tax u/s 115BBE. 3. Subsequently, Ld. PCIT examined the record of assessment-proceeding and viewed that the assessment-order passed by AO is erroneous in so far it is prejudicial to the interest of revenue which attracts revisionary-jurisdiction u/s 263. Accordingly, the PCIT issue....

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....s as under: "Penalty in respect of certain income. 271AAC. (1) The Assessing Officer or the Commissioner (Appeals) may, notwithstanding anything contained in this Act other than the provisions of section 271AAB, direct that, in a case where the income determined includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D for any....

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....b-section (1). (3) The provisions of sections 274 and 275 shall, as far as may be, apply in relation to the penalty referred to in this section." 6. A careful reading of above section 271AAC clearly reflects that the imposition of penalty is not compulsory in every case, the use of words "may direct" shows discretion available to the AO. Therefore, the AO may or may not impose penalty ....