Shri Dattatrya Jagannath Aware, Ahmednagar V. Assistant Commissioner of Income-Tax, Circle, Ahmednagar

ITA 620/PUN/2022

AI Insights

The case involves an appeal by Shri Dattatrya Jagannath Aware against the order of the CIT(A), National Faceless Appeal Centre, Delhi, which confirmed the levy of penalty under section 271(1)(c) of the Income Tax Act for the assessment year 2016-17. The assessee had originally declared a total income of Rs.8,65,780 in his e-filed return, which was later revised to include an additional income of Rs.2,06,48,600 following a survey under section 133A of the Act. The Assessing Officer accepted the revised return without any additions or variations but still initiated penalty proceedings, arguing that the additional income would not have been disclosed without the survey. The Tribunal, referencing a similar case (Kirloskar Chillers Pvt. Ltd.), found that since the revised return was accepted without any changes, the penalty was not warranted.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 132838 (ITAT-PUNE)
• Duration Of Justice: 10 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 11-12-2022
• Assessment Year: misc
• Appeal Filed On: 11-12-2012
• Other Referred Cases: CIT Vs. SAS Pharmaceuticals, Kirloskar Chillers Pvt. Ltd. in ITA Nos. 594 & 595/PUN/2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Revised return
• Section: 271(1)(c); 142(1); 133A; 143(2)

Judgement Text

आयकर अपीलीय अधिकरण “ए” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.620/PUN/2022 धििाारण वर्ा / Assessment Year : 2016-17 Shri Dattatrya Jagannath Aware, At Post-Nimbodi, Jamkhed Road, Tal.-Nagar, Ahmednagar-414001 PAN : AIVPA4765H .......अपीलार्थी / Appellant बिाम / V/s. Assistant Commissioner of Income Tax, Circle – Ahmednagar ......प्रत्यर्थी / Respondent Assessee by : Shri Prasad S. Bhandari Revenue by : Shri Ramnath P. Murkunde सुनवाई की तारीख / Date of Hearing : 12-12-2022 घोषणा की तारीख / Date of Pronouncement : 15-12-2022 आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM : This appeal by the assessee against the order dated 17-06-2022 passed by the CIT(A), National Faceless Appeal Centre, Delhi (‘NFAC’) for assessment year 2016-17. 2. The assessee raised four grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A), NFAC, Delhi justified in confirming the levy of penalty u/s. 271(1)(c) of the Act. 2 ITA No.620/PUN/2022, A.Y. 2016-17 3. The only contention raised by the ld. AR, Shri Prasad S. Bhandari that there is no basis for levy of penalty u/s. 271(1)(c) of the Act as the income declared in the revised return of income was accepted by the AO in the facts and circumstances of the case. 4. In view of the same, let us examine the facts and circumstances of the case, at the outset, we note that the assessee originally e-filed return of income for A.Y. 2016-17 declaring a total income of Rs.8,65,780/- on 27- 09-2016. The respondent-revenue conducted a survey action in the case of assessee u/s. 133A of the Act on 27-09-2017. According to the AO, the assessee declared an additional income of Rs.2,06,48,600/- and included the same in the revised return of income which was filed on 31-03-2018. Under compulsory scrutiny proceedings, the AO issued notices u/s. 143(2) and 142(1) of the Act. In response to the said notices, the assessee was represented through his authorized representative. The AO completed scrutiny proceedings and accepted the total income declared through revised return of income filed by the assessee without any variation and additions thereon. We note that the AO initiated penalty proceedings u/s. 271(1)(c) of the Act on the ground had no survey action carried out on the assessee, the assessee would not have bothered to disclose the amount of Rs.2,06,48,600/-. We note that the assessee by placing reliance on the various decisions contended that levy of penalty is not maintainable in view of acceptance of revised return of income, but however, the AO proceeded to levy of penalty of Rs.72,50,000/- u/s. 271(1)(c) of the Act. We note that the assessee reiterated the same submissions as made before the CIT(A) questioning the levy of penalty in the absence of any variation in the revised return of income. The CIT(A) discussed the said contention of the assessee along with various decisions from pages 12 to 14 of the impugned 3 ITA No.620/PUN/2022, A.Y. 2016-17 order, wherein, we note that the CIT(A) did not accept the submissions of the assessee and confirmed the order of AO. Before us, the ld. AR drew our attention to the order of this Tribunal in the case of Kirloskar Chillers Pvt. Ltd. in ITA Nos. 594 & 595/PUN/2019 for A.Ys. 2011-12 and 2012-13 vide order dated 23-08-2022, wherein this Tribunal by placing reliance on the decision of Hon’ble High Court of Delhi in the case of CIT Vs. SAS Pharmaceuticals reported in 335 ITR 259 (Delhi) deleted the penalty therein by holding no concealment of income or furnishing inaccurate particulars of income is made out by the authorities as the assessee had made a complete disclosure in the revised return of income and offering the additional amount for the purpose of tax. We note that the facts and circumstances in the case of Kirloskar Chillers Pvt. Ltd. (supra) are identical to the facts on hand which is not disputed by the ld. DR. In view of the same, we can safely conclude that the findings therein rendered by this Tribunal are applicable to the facts on hand, since, in the present case, the AO accepted the revised return of income without any variation, therefore, in our opinion, the penalty as confirmed by the CIT(A), NFAC, Delhi is not justified and it is deleted. Thus, the grounds raised by the assessee are allowed. 5. In the result, the appeal of assessee is allowed. Order pronounced in the open court on 15 th December, 2022. Sd/- Sd/- (Inturi Rama Rao) (S.S. Viswanethra Ravi) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे / Pune; दिनाांक / Dated : 15 th December, 2022. रदव 4 ITA No.620/PUN/2022, A.Y. 2016-17 आदेश की प्रधिधलधप अग्रेधर्ि / Copy of the Order forwarded to : 1. अपीलार्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A), NFAC, Delhi. 4. The CIT concerned. 5. दवभागीय प्रदतदनदि, आयकर अपीलीय अदिकरण, “ए” बेंच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गार्ड फ़ाइल / Guard File. //सत्यादपत प्रदत// True Copy// आिेशानुसार / BY ORDER, वररष्ठ दनजी सदचव / Sr. Private Secretary आयकर अपीलीय अदिकरण ,पुणे / ITAT, Pune