Jagdishchandra Prahaladdas Pasari vs. ITO Ward 14

Parties Involved

Facts Summary

The assessee, Jagdishchandra Prahaladdas Pasari, filed his return of income for the Assessment Year 1997-98 on 03.11.1997, declaring a total income of Rs. 1,78,040/-. The return was revised on 7.11.1997 to Rs. 1,26,900/-. The case was processed under section 143(1) of the Income Tax Act, 1961. The case was selected for scrutiny under section 143(3) of the Act, and the total income was reassessed to Rs. 1,59,725/-. The Ld. CIT(A) confirmed the addition of Rs. 83,507/- and Rs. 8,00,000/-. The assessee preferred an appeal before the Ld. CIT(A), which was dismissed. The assessee then preferred an appeal before the ITAT, which was also dismissed. The AO initiated penalty proceedings under section 271(c) of the Act, treating the additions of Rs. 83,507/- and Rs. 8,00,000/- as income for which particulars have been concealed/inaccurate particulars have been filed and levied a penalty of Rs. 3,25,005/-. The assessee preferred an appeal before the Ld. CIT(A), which was dismissed. The assessee then preferred an appeal before the ITAT, which was also dismissed.…

Legal Issues

• 1. Whether the Ld. CIT(A) has rightly applied the law viz. Section 271(c) of the Act whilst confirming the penalty of Rs 3,25,000/- levied by the AO on addition of Rs. 8,00,000/- and Rs 83,507/-.
• 2. Whether the penalty proceedings under section 271(1) (c) could be initiated.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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