CHANDRASHEKHAR AGARWAL vs.. INCOME TAX OFFICER ITAT JODHPUR BENCH Penalty u/s 271(1)(c)—Validity of penalty—Assessee deriving income from contract work, filed return of income u/s 44AD and showed gross receipts claiming deduction for material supplied by Department—AO held that material supplied by Department could not be deducted from gross receipts and made addition on account of interest and difference in bank balance—AO worked out profit on gross receipts and also estimated the truck income u/s 44AE—AO also initiated penalty proceedings u/s 271(1)(c) by considering specified amount as concealed income and levied penalty of some amount—CIT(A) confirmed Order of AO—Held, AO made certain additions but initiated penalty proceedings only in respect of presumptive income u/s 44AE amounting to specified amount—Assessee had written letter to AO that he agreed for presumptive addition of specified amount and would also not file any Appeal, if penalty proceedings were not initiated—AO partly agreed with request of Assessee because no penalty proceedings were initiated in respect of other additions—Penalty amounting to Rs. 5,000 levied by AO was not justified because AO partly accepted request of Assessee—AO ought to have either rejected or accepted request of Assessee in totality, but not in part—CIT(A) was not justified in sustaining penalty levied by AO—Penalty was deleted—Appeal of Assessee allowed
Posted on: Wed, 08 Oct 2014 13:02:32 +0000
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