Manoj Kumar Divakaran vs DCIT, Circle – 42(2)(1), Mumbai

Parties Involved

Facts Summary

The assessee, Manoj Kumar Divakaran, filed an original return of income under section 139(1) on 05-07-2022, declaring income of Rs. 47,42,500/-. The case was selected for scrutiny. The assessee filed a revised computation of income on 25-11-2023, including cash deposits of Rs. 38,36,500/- and paid the due tax of Rs. 19,89,030/-. The Assessing Officer passed the assessment order on 26-03-2024, making an addition of Rs. 38,36,500/- and initiating penalty proceedings under section 270 for under-reporting of income. The assessee filed an application for immunity from penalty on 30-04-2024, which was not accepted or rejected by the Assessing Officer. The assessee appealed against the penalty levied by the Commissioner of Income Tax (Appeals).…

Legal Issues

• 1. Whether the penalty levied by the Assessing Officer was justified?
• 2. Whether the show cause notice issued by the Assessing Officer was specific?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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