Lakhubhai Nathubhai Sisodiya vs. Income Tax Officer

Parties Involved

Facts Summary

The case of the assessee was reopened under section 147 of the Income Tax Act due to the detection of substantial cash deposits in savings bank accounts and the purchase of immovable property during the relevant financial year. The assessee had not filed a return of income for the year and was issued a notice under section 148. During the reassessment proceedings, the Assessing Officer noted that the assessee had purchased property worth Rs. 8,75,000/- and treated the amount as unexplained under section 69 of the Act. Penalty proceedings under section 271(1)(c) were initiated for concealment of income. The assessee submitted that the addition was agreed to in order to buy mental peace and avoid prolonged litigation. The Assessing Officer found the submissions untenable and levied a penalty of Rs. 8,75,000/-. The Commissioner of Income Tax (Appeals) dismissed the appeal solely on grounds of delay without considering the merits.…

Legal Issues

• 1. Whether the penalty imposed under section 271(1)(c) of the Income Tax Act for concealment of income is justified.
• 2. Whether the delay in filing the appeal should be condoned.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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