Commissioner of Income Tax vs Icon Controls (P) Ltd.

Relying upon the decision of Supreme Court in K.C. Builders and Another Vs. The Assistant Commissioner of Income Tax, , the CIT(A) and the Tribunal have deleted the penalty imposed by the AO u/s 271(1)(c) of the IT Act. The CIT(A) and Tribunal had both concurrently held that the assessed in the instant case did not make any conscious attempt to conceal his income or evade the tax which was, in terms of the decision taken in K.C. Builder''s case (supra), one of the essential conditions that required to be kept in mind while imposing penalty. The Tribunal has in this regard observed as under:

In the present case, having regard to the conduct of the assessed we are unable to say that there was any conscious concealment or desire or attempt to evade the imposition of tax. The decision of the CIT(A) to cancel the penalty is accordingly upheld and the appeal of the Department is dismissed.

In the light of the concurrent findings recorded by the CIT(A) and Tribunal that the mistake in not adding back the loss on the sale of the capital asset was bona fide and was corrected immediately after the same was pointed out to the assessed, no substantial question of law arises for our, consideration. This appeal accordingly fails and is hereby dismissed.