Revenue's Appeal Dismissed: No Penalty for Concealed Income

The revenue's appeal against the deletion of penalty under section 271(1)(c) of the Act by the CIT(A) for the assessment year 2006-07 was dismissed. The Tribunal held that once the return of income is filed in response to a notice under section 153A, all pending proceedings for those assessment years stand abated, and income should be computed based on the return filed. As the undisclosed income was disclosed in the return filed after the notice under section 153A, the Tribunal concluded that there was no concealment of income, resulting in the deletion of the penalty upheld by the Tribunal.

---

---

Issues involved: Appeal against deletion of penalty u/s 271(1)(c) of the Act by CIT(A) for assessment year 2006-07.

Summary:
The appeal was filed by the revenue against the order of CIT(A) deleting the penalty u/s 271(1)(c) of the Act for the assessment year 2006-07. The assessee disclosed the entire income in response to a notice issued u/s 153A of the Act, with no additions made by the assessing officer. The Tribunal referred to similar cases where penalties were deleted based on identical facts. The assessing officer initiated penalty proceedings based on the disclosure of undisclosed income of Rs. 45,00,000 by the assessee in response to the notice u/s 153A. However, the Tribunal held that once the return of income is filed in response to the notice u/s 153A, all pending proceedings for those assessment years stand abated, and income should be computed based on the return filed. As the undisclosed income was disclosed in the return filed after the notice u/s 153A, the Tribunal concluded that there was no concealment of income. Therefore, the CIT(A) rightly deleted the penalty, a decision upheld by the Tribunal, leading to the dismissal of the revenue's appeal.

---