H Venkatesh Reddy Vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, H Venkatesh Reddy, an individual, did not file his return of income for the assessment year 2015-16 as required under section 139 of the Act. The department received information indicating income from various sources such as rent, time deposits, and other miscellaneous receipts. Consequently, the case was reopened under section 147 of the Act, and a notice under section 148 was issued on March 27, 2021. In response, the assessee filed his return of income declaring a total income of ₹ 41,15,380/-. The Assessing Officer (AO) accepted the returned income and framed the assessment order dated March 9, 2022, without making any further addition. However, the AO initiated penalty proceedings under section 271(1)(c) of the Act for concealment of income. The assessee contended that he had not concealed any income and had furnished all required information and documents. He explained that he was unable to file his return within the prescribed time due to severe ill health and repeated hospitalizations, supported by a medical certificate.…

Legal Issues

• 1. Whether the learned CIT(A) erred in confirming the levy of penalty under section 271(1)(c) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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