The Tax Publishers2020 TaxPub(DT) 5442 (Mum-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Though AO viewed that assessee had not provided any evidence or document to establish vacancy of property and accordingly AO levied penalty on account of concealment of rental income, however, it was beyond the possibility of assessee to obtain confirmation as tenant had already left the premises. AO could not ask assessee to do a impossible task and considering the facts and circumstances, no penalty was leviable under section 271(1)(c).

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Assessee did not provide any evidence or document to establish vacancy of property -

AO noticed that assessee was disclosing rental income from certain property from earlier years but in the concerned financial year no income was disclosed. Assessee filed explanations that no rental income was received from assessment year 2008-09 due to vacancy of premises. AO was of the opinion, that assessee had not provided any evidence or document to establish vacancy of property and therefore, AO estimated rental income from house property of Rs. 36,000 and also levied penalty under section 271(1)(c) on account of concealment. Held: It was beyond the possibility of assessee to obtain confirmation as tenant had already left the premises. AO could not ask assessee to do a impossible task and considering the facts and circumstances no penalty was leviable under section 271(1)(c).

Relied:CIT v. Reliance Petroproducts Ltd. (2010) 322 ITR 158 (SC) : 2010 TaxPub(DT) 1683 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10



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