Ita/2/2015 Of Commissioner Of Income Tax v. M/S Agrawal Constuction Co

02.03.2015 Per R. S. Jha, J. Shri S. A. Dharmadhikari, Advocate for the appellant.This Income Tax Appeal has been filed by the appellant Commissioner of Income Tax under section 260-A of the Income Tax Act, 1961 being aggrieved by order dated 26.9.2014 passed by the Income Tax Appellate Tribunal, Jabalpur Bench, Jabalpur in I.T.A No.19/Jab/2013. The only ground raised by the appellant in this appeal is in respect of the order passed by the Appellate Tribunal quashing the proceedings initiated by the Department for imposing penalty and the consequent penalty imposed thereby upon the respondents. It is submitted by the learned counsel for the appellant that the penalty proceedings were initiated by the authorities in view of the fact that it was found that the respondent had deliberately submitted inaccurate information which amounted to concealment of income. It is further submitted that the penalty proceedings initiated by the appellant in respect of the respondent is in accordance with law and in such circumstances interference by the Appellate Tribunal gives rise to substantial questions of law for adjudication in this appeal. Having hear the learned counsel for the appellant, it is observed that the Appellate Tribunal, after hearing the appellant, has specifically recorded a finding to the effect that the Assessing Officer has not recorded any finding in the assessment proceedings to the affect that the assessee had concealed particulars of its income. The Appellate Tribunal has held that in the absence of any such finding in respect of incorrect particulars or concealment, further proceedings for imposing penalty against the respondent could not have been initiated by the authority concerned. It is further held that merely observing that the penalty proceedings under section 271 should be initiated, is not enough as the authority is required to record its subjective satisfaction for initiating penalty proceedings. In view of the aforesaid, we find that the findings recorded by the Appellate Tribunal are finding of facts which are passed after proper appreciation of the record and does not give rise to any substantial question of law for adjudication, moreso as the findings of fact have neither been assailed nor challenged. In the result, we do not find any substantial question of law arises for adjudication in this appeal. The appeal, filed by the appellant being meritless, is accordingly dismissed. SS ( AJIT SINGH ) JUDGE ( R. S. JHA ) JUDGE