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| The Tax Publishers2019 TaxPub(DT) 4940 (Del-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where despite sale of jewellery and earning long-term capital gain, assessee had not disclosed the same in the return of income which was added by AO and thereafter initiated penalty proceedings under section 271(1)(c) and levied penalty being 300% of the tax sought to be evaded which was not justified, therefore, restricted to 100% tax sought to be evaded.
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Penalty under section 271(1)(c) - Validity - Assessee sold jewellery and earned long-term capital gain which was not offered to tax -
AO completed assessment under section 147/143(3) by making addition on account of long-term capital gain. It was noted by AO that assessee during the year had sold jewellery and had earned long-term capital gain which was not offered to tax and accordingly added the same to the total income of the assessee. Accordingly imposed penalty under section 271(1)(c). Held: It was an admitted fact that despite sale of jewellery and earning long-term capital gain, assessee had not disclosed the same in the return of income which was added by AO and thereafter initiated penalty proceedings under section 271(1)(c) and levied penalty being 300% of tax sought to be evaded which was not justified. Therefore, penalty was restricted the same to 100% of tax sought to be evaded.
REFERRED : MAK Data (P) Ltd. v. CIT (2013) 358 ITR 593 (SC) : 2013 TaxPub(DT) 2358 (SC) CIT v. Zoom Communication (P) Ltd. (2010) 327 ITR 510 (Del) : 2010 TaxPub(DT) 1957 (Del-HC)
FAVOUR : Partly In assessee's favour
A.Y. :
INCOME TAX ACT, 1961
Section 271(1)(c)
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