2012 (11) TMI 156

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.... penalty of Rs.2,19,493/- levied u/s.271(1)(c) of the I.T. Act to the extent of Rs.5,600/-."   3. Assessee had filed return of income on 31-10-2005 declaring income of Rs.9,56,220/- which included Rs.7,15,000/- being the income offered consequent to survey u/s.133A on 9-2-2005. The A.O. however assessed the income at Rs.36,87,862/- by making addition on account of unaccounted investment/income/interest. The additions made by A.O. were substantially deleted by CIT (A) which resulted in the total income being computed at Rs.9,72,220/- as against the returned income of Rs.9,56,220/- A.O. issued show cause notice for levy of penalty in response to which the assessee submitted after giving the appeal effect consequent to the order of CIT....

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.... the return of income additional income only on account of survey u/s.133A is only an assumption without any basis. The Ld. A.R. submitted that the survey was carried out on 9-2-2005 when the relevant previous year had not come to an end and therefore the question of concealing the income or furnishing of inaccurate particulars before the due date of furnishing the return or before the close of the relevant previous year does not arise at all. He further submitted that the case laws relied by the A.O. are distinguishable on facts. CIT (A) after considering the submissions of assessee held that that the additions made by the A.O. has been deleted except for an amount of Rs.16,642/-. On the aforesaid addition the minimum penalty that can b....

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.... and the same was included in the return of income filed by the assessee u/s. 139(1). The additions made by the A.O. during the course of assessment proceedings were substantially deleted by the appellate authorities except to the extent of Rs.16,642/- that was sustained. Penalty levied on the additions made by the A.O. were deleted by CIT (A) except for the penalty of Rs.5,600/- on the addition of Rs.16,642/-. The reason for levy of the penalty was that the assessee had included in the return of income the additional income only on account of survey u/s. 133A. 7. Clause (c) of section 271(1) authorizes the A.O. to impose the penalty when the A.O. is satisfied that the assessee has either (a) concealed the particulars of his income or (b....