Love all - Sania Mirza escapes penalty
THE assessee, a renowned professional international tennis player filed her IT return for the assessment year 2004-05 declaring a total income of Rs. 94,605/. Along with her return of income, she filed a statement of affairs wherein she disclosed that she had received Rs.30,63,310/- as awards from the Government and from other institutions and which amount was not offered to tax.
The assessing officer accepted this return but later on this assessment was opened and at this time, the tennis player voluntarily offered this amount of Rs.30,63,310/- for tax. It was submitted by the tennis player's Chartered Accountant that the amount was shown in the capital account and was not shown as a capital receipt. However, since the issue had arisen, it was being offered as taxable income.
The said offer was accepted but the AO decided to impose penalty of Rs.10,14,582/- on the ground that the assessee had furnished inaccurate particulars of her income and concealed her income.
This view was upheld by the CIT(A) but the Tribunal observed that there was no mala fide on the part of the tennis player and as there was no concealment of income, set aside the penalty.
The Revenue is aggrieved by this order and is before the AP High Court.
The High Court held that it was an error committed by the assessee inasmuch as this amount was not shown as capital receipt and when the same was pointed out the amount was surrendered to tax.
Holding that it was not a fit case for imposition of penalty, the Revenue appeal was dismissed.
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