Delhi HC: Bipolar Disorder Alone Does Not Qualify as Medical Disability Without Benchmark Criteria  ||  Kerala HC: Excommunicating Knanaya Catholics For Marrying Outside the Community is Unconstitutional  ||  Kerala HC: Temporary Use of Religious Land For Public Infrastructure is Not a ‘Transfer’ under Law  ||  P&H HC: Habeas Plea in Child Custody Case Not Maintainable if Child is With Natural Guardian and Safe  ||  Delhi HC: Illegal Termination Does Not Automatically Entitle Employee to Reinstatement or Back Wages  ||  Gujarat High Court: Forcing Toddler to Attend Court 6 Hours Weekly For Grandfather Visits is Unjust  ||  Supreme Court Rejects Sameer Wankhede’s Plea, Directs Timely Resolution of Disciplinary Proceedings  ||  Supreme Court Rejects NHAI Review on Solatium Retrospectivity, Bars Reopening Settled Claims  ||  SC: Excise Duty Exemptions Based on Intended Use Must be Construed Liberally For Assessee  ||  Supreme Court: DSC Personnel Eligible For Second Pension; Allows Condonation of Shortfall    

DCIT, Central Circle vs. KGN Industries Ltd. - (Income Tax Appellate Tribunal) (07 Sep 2022)

When assessee has wilfully and deliberately concealed income by not filing the Return of Income, assessee is liable for penalty

MANU/IB/0589/2022

Direct Taxation

The present appeal has been filed by the Revenue against the order passed by the Commissioner of Income Tax (Appeals), Ahmedabad quashing the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961

It is seen from record, the original assessment order was passed is a best judgment assessment passed under Section 144 read with 147 of the Act. During the penalty proceedings also, the assessee has not participated in the hearings. The assessee being a Public Ltd. Company and having not filed the Return of Income for the assessment year 2010-11 and also not responded to notice in spite of repeated opportunities. Therefore, the Assessing Officer treated the entire income as concealed income and levied minimum penalty of Rs. 57,13,930 within the meaning of Section 271(1)(c) read with Explanation 1 of the Act.

The A.O. has clearly mentioned that, penalty proceedings for concealment of income initiated by way of issue of notice 274 read with Section 271(1)(c) of the Act. Similarly in penalty order, the assessing officer held that, the assessee has wilfully and deliberately concealed income by not filing the Return of Income. Therefore, the assessee is liable for penalty under Section 271(1)(c) read with Explanation 1 of the Act.

It is further noted in the assessment order that the assessing officer also initiated penalty proceedings under 271F of the Act as well as under Section 271B of the Act for not getting the books audited. Thus, the conclusion arrived by the Learned CIT(A) is legally not correct and the same is set aside and the penalty order passed under Section 271(1)(c) by the Assessing Officer is restored. Appeal allowed.

Tags : PENALTY   DELETION   LEGALITY  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved