Penalty under section 271(1)(c) could not be levied on account of addition made on estimate basis

IT : Penalty under section 271(1)(c) was not leviable on account of wrong claim made by assessee in his original return of income, which was corrected in return of income filed under section 153A
IT : Penalty under section 271(1)(c) could not be levied on account of addition made on estimate basis
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[2014] 51 taxmann.com 204 (Jodhpur - Trib.)
IN THE ITAT JODHPUR BENCH
Mahaveer Jain
v.
Deputy Commissioner of Income-tax*
HARI OM MARATHA, JUDICIAL MEMBER
AND N.K. SAINI, ACCOUNTANT MEMBER
IT APPEAL NO. 121 (JODH.) OF 2013
[ASSESSMENT YEAR 2004-05]
SEPTEMBER  13, 2013
Section 271(1)(c), read with section 153A, of the Income-tax Act, 1961 - Penalty - For concealment of income (Section 153A return) - Assessment year 2004-05 - Assessee originally filed his return of income under section 139(1) - During search certain incriminating documents assessee were seized - Assessee filed return under section 153A and surrendered certain amount on account of sundry creditors and offered same for levy of tax as amounts in question were small and assessee wanted to avoid undue litigation - Assessing Officer framed assessment on basis of return filed by assessee under section 153A and not on basis of original return - Whether assessee could be said to have concealed income in respect of sundry creditors so as to levy penalty under section 271(1)(c) - Held, no [Para 9] [In favour of assessee]

Section 271(1)(c), read with section 153A, of the Income-tax Act, 1961 - Penalty - For concealment of income (Section 153A return) - Assessment year 2004-05 - Assessee had earned capital gain on sale of plot in relevant year but sale and capital gains were shown in return of subsequent year - Subsequently, assessee rectified this mistake while filing return under section 153A - Assessing Officer completed assessment on basis of return filed under section 153A but levied penalty under section 271(1)(c) for concealing particulars of capital gain in original return - Whether on facts assessee could be said to have concealed particulars in respect of capital gain so as to levy penalty under section 271(1)(c) - Held, no [Para 9] [In favour of assessee]
Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income (Section 153A return) - Assessment year 2004-05 - In original return assessee showed profit on sale of certain agricultural land as business income - However, in return of income under section 153A he had shown such profit as capital gain in order to avoid undue litigation - Assessing Officer framed assessment on basis of return filed under section 153A levied penalty under section 271(1)(c) - Whether penalty under section 271(1)(c) was not leviable on account of wrong claim made by assessee in his original return of income, which was corrected in return of income filed under section 153A - Held, yes [Paras 9 and 10] [In favour of assessee]
Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income (Estimated addition) - Assessment year 2004-05 - Whether penalty under section 271(1)(c) could not be levied on account of addition made on estimate basis - Held, yes [Para 9] [In favour of assessee]