Penalty for Concealment of Income Deleted on Appeal: Return Filed Timely, No Variance The appeal against the deletion of penalty under section 271(1)(c) for concealment of income identified during a survey was dismissed. The CIT(A) canceled ...
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Penalty for Concealment of Income Deleted on Appeal: Return Filed Timely, No Variance
The appeal against the deletion of penalty under section 271(1)(c) for concealment of income identified during a survey was dismissed. The CIT(A) canceled the penalty, citing that the disclosed income was declared in the return within the due date and was accepted without further additions. The Tribunal upheld the CIT(A)'s decision, emphasizing that if the impugned amount is disclosed in the return of income and there is no variation between the returned and assessed income, no penalty is leviable. The Revenue's appeal was dismissed, and no penalty was deemed warranted.
Issues Involved: Appeal against deletion of penalty u/s 271(1)(c) for concealment of income identified during survey.
Summary: 1. The case involved the deletion of penalty u/s 271(1)(c) by the CIT(A) for concealment of income identified during a survey, based on incriminating evidence found during the survey.
2. The survey under section 133A revealed unaccounted receivables of Rs. 95 lacs, which the assessee disclosed in the return of income. The Assessing Officer (AO) initiated penalty proceedings treating the amount as concealed income. The AO justified the penalty on the grounds of mens rea for not declaring the income in the books of account.
3. The CIT(A) cancelled the penalty citing that the explanation-5 to section 271(1)(c) was not applicable, and the disclosed income was declared in the return within the due date, which was accepted without further additions.
4. The Tribunal, considering a similar case precedent, held that if the impugned amount is disclosed in the return of income, no penalty is leviable. Citing various legal precedents, the Tribunal emphasized that where the returned income is accepted, there is no basis for the levy of penalty.
5. As there was no variation between the returned and assessed income, the Tribunal upheld the CIT(A)'s order and dismissed the Revenue's appeal, stating that no penalty was warranted.
6. The appeal filed by the Revenue was dismissed, and the order was pronounced in open Court on 22/10/10.
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