Section 271(1)(c) of the income tax Act, 1961 — Penalty — Concealment Penalty — Tribunal had recorded finding of fact that no penalty can be imposed under Section 271(1)(c) as Revenue has failed to establish that assessee has concealed income or furnished inaccurate particulars.[2019] 51 ITCD 79 (ALL)
Facts : Being aggrieved of the order of Tribunal, revenue went on appeal before High Court and raised the question of law that (A) Whether on the facts and circumstances of the case, the Hon'ble ITAT, New Delhi is legally justified in deleting the penalty of Rs.  75,76,441/- imposed by the AO ignoring the quantum appeal which had been confirmed by the Ld. CIT(A) as well as the ITAT, New Delhi on which the penalty was imposed.
(B) Whether on the facts and circumstances of the case, the ITAT has not erred in law in deleting the penalty of Rs.  75,76,441/- imposed by the AO contradicting their findings in deciding the quantum appeal that the whole transaction was designed to show huge amounts as gifts without any liability of paying taxes.”
Held, that the Assessing Officer did not record any finding as to incorrect, erroneous or false return of income filed by the assessee which could lead to the fact that assessee has furnished inaccurate particulars of income and make him liable for penalty under Section 271(1)(c). The Assessing Officer had only doubted the genuineness of the gifts on ground of human probabilities and had also doubted the creditworthiness of donors and genuineness of transaction. The Tribunal on the other hand had recorded finding regarding the identity of creditors, their creditworthiness and genuineness of the transactions which were before the Assessing Officer but he had not properly appreciated the same and discarded and doubted the genuineness of gifts on ground of human probabilities, though they were tax payers and the amounts gifted had been disclosed in their tax return for relevant year. Instant case, is not a case of either concealment of income or of furnishing inaccurate particulars as neither the assessing authority nor first appellate authority recorded any finding to such effect that details furnished by the assessee to be incorrect, erroneous or false. Considering the facts and circumstances of the case, we are of the considered opinion that the Tribunal had recorded finding of fact that no penalty can be imposed under Section 271(1)(c) of the Act as Revenue has failed to establish that assessee has concealed income or furnished inaccurate particulars. These appeals have no merit and are hereby dismissed.