The Income Tax Appellate Tribunal (ITAT) Pune Bench ruled that no penalty shall be levied when no variation is found in returned income and assessable income.
Meera Anirudha Mirgunde, the taxpayer filed the appeal against the order passed by the National Faceless Appeal Centre for assessment year 2012-13.
After filing the return of income, it was accepted by the respondent-revenue. Thereafter, the AO initiated penalty proceedings under Section 271(1)(c) of the Income Tax Act treating the returned income in response to the notice under Section 148 of the Income Tax Act as concealment of income, accordingly imposing a penalty of Rs.1,50,000/- under Section 271(1)(c) of the Income Tax Act.
During the appeal proceedings before the tribunal C.H. Naniwadekar & Kiran Sanmane on behalf of assesee argued that there was no addition made by the Assessing Officer (AO) and in the absence of any satisfaction in the assessment order.
Further no demand whatsoever raised by the Revenue and without there being any charge of furnishing inaccurate particulars of income and concealment of income, the AO levied penalty
Ramnath P. Murkunde, Counsel for the Revenue, submitted that supported the decision of the lower authorities.
It was observed by the tribunal that the assessment order and no demand raised by the AO and no disallowance or addition made by the AO. Further, in the present case, there was no variation in the returned income declared by the assessee which was accepted by the AO in the reassessment proceedings.
After reviewing the facts and submissions, the two-member bench of the tribunal comprising R.S. Syal (Vice-President) andS.S. Viswanethra Ravi (Judicial Member) held that there was no concealment of income or furnishing of inaccurate particulars of income attracting the provisions under Section 271(1)(c) of the Income Tax Act as the assessee made complete disclosure in the return of income and further offered the same for taxation.
Thus, the bench allowed the appeal filed by the assessee.
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