2011 (9) TMI 398

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.... revenue has preferred this appeal challenging the order passed by the Tribunal which has set aside the penalty imposed by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961 ('the Act'). 2. The assessee is a wholesale dealer in silk sarees. He had not. filed any returns. A survey was conducted in the premises of the assessee. During such survey they found that the assesse....

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....sed income became Rs. 19.89,820/- as against the income declared by the assessee in a sum of Rs. 18,25,180/-. The assessee accepted the order of assessment and paid taxes. It is thereafter proceedings were initiated under Section 271(1)(c) of the Act for recovery of penalty. The assessing authority held but for the DDIT (Inv) noticing the assessee maintaining a concealed bank account the assessee ....

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....grieved by the said order the revenue is in appeal. 5. This appeal was admitted on 5.3.2007 to consider the following substantial questions of law : - (1)  Whether the Tribunal was correct in holding that no penalty under Section 271(1)(c) of the Act can be levied despite the fact that the assessee came forward to file a return only after a survey disclosing a sum of Rs. 16,15,702/- and....

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....xceed three times the amount of tax sought to be evaded by reason of the concealment of particulars of his income. 7. In the instant case the return is filed after the survey. In the return filed the assessee has declared a total income of Rs. 18,25,180/- for the assessment year 2000-01 on 25.10.2000 within the time prescribed under law. The return filed was taken up for scrutiny under Section ....