2026 (1) TMI 1667

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....g grounds of appeal which are reproduced as under: "1. That on the facts and circumstances of the case and in law, the order dated 19.09.2025 passed by the Ld. Commissioner of Income Tax (Appeals) (CIT(A)) under section 250 of the Income Tax Act, 1961 (the Act) is patently illegal, erroneous and bad in law and on facts. 2. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in sustaining the penalty of Rs. 8,56,794 made by the Ld. Assessing Officer (AO) under section 271(1)(c) of the Act for concealment of income. 3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that once the returned of income is accepted without any variation ....

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....of the above grounds of appeal, which are without prejudice to one another, before or at the time of hearing of the appeal in the interest of natural justice. " 3. Although multiple grounds have been raised, the sole substantive issue relates to levy of penalty of Rs. 8,56,794/- u/s 271(1)(c) of the Act. 4. Brief facts are that the assessee had not filed his return for A.Y. 2015-16 despite having salary income, interest income and other transactions reflected on the Insight portal of the department. Accordingly, Ld. AO issued a notice u/s 148 of the Act in response to which return declaring income of Rs. 33,56127/- was filed. Subsequently assessment was completed at the same income and penalty u/s 271(1)(c) was initiated. Vide order d....

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....on 271 of the Act. Ld. DR, on the other hand, had strongly relied on the orders of the lower authorities. 6. We have heard the rival submissions and perused the material available on record. We note that the assessee, despite hearing substantial income, did not file his return for A.Y. 2015-16. It was only after a notice u/s 148 was issued on 06.04.2022 that the return in response was filed on 05.05.2022, declaring total income of Rs. 33,56,130/-. Hence, Ld. AO has rightly held that the income would have escaped assessment if the re-assessment proceedings had not been initiated and therefore, the assessee's argument that since assessed income in the same as returned income and therefore no penalty u/s 271(1)(c) can be levied is without a....