TaxTMI 
TaxTMI 
2013 (1) TMI 574
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....as completed upon the assessee under Section 143(3) of the Act in which an addition of Rs.40,74,700/- was made in the following circumstances. There was a survey under Section 133A on 16th December, 2003 in the course of which some documents pertaining to the assessee were found and were impounded. These documents consisted of blank transfer deeds for shares duly signed, affidavits, share application forms, copies of bank accounts, income tax returns and assessment orders of certain other companies. Those documents were forwarded to the AO assessing the present assessee who called upon the assessee to explain the contents of the documents and the genuineness of the transactions represented by them. It appears that the documents belonged to ....
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....003 - 2004 Rs.92,86,000/- Rs.1,82,51,000/- It has also been stated that Sh. V.K. Aggarwal, Promoter-Director of the assessee company has utilized this offered sum of Rs.1,82.51 lacs for inducting funds into the books of the assessee company as share application money. It has been stated further that the additional fund flow to the extent of Rs.56.49 lacs (239 lacs - 182.51 lacs) which remain unexplained is now being offered for taxation by the company as its income from other sources. Subject to the condition that the offer of the surrender is by way of voluntary disclosure without admitting any concealment whatsoever or any intention to conceal and subject to non initiation of penalty proceedings and prosecution." It appe....
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....with the assessee's A.R. a sum of Rs.40,74,000/- is treated as income from other sources" 4. There was no appeal against the aforesaid addition by the assessee. The addition of Rs.40,74,000/- thus became final. 5. Subsequently the AO initiated penalty proceedings for furnishing inaccurate particulars of its income under Section 271(1)(c) of the Act. The gist of the assessee‟s reply was that the amount was offered as income only to buy peace and avoid protracted litigation and with the condition that no penalty or prosecution proceedings would be launched. It was further stated that the offer was made before any investigation was carried out into the matter and, therefore, was voluntary. Several authorities were relied upon in su....
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....r tax. In view of the above facts and circumstances of the case, I am satisfied that it is a fit case for imposition of penalty u/s 271(1)(c) read with section 274 of the IT Act, 1961." 6. The assessee preferred an appeal to the CIT(Appeals) who rejected the submissions of the assessee and confirmed the penalty. A further appeal was preferred by the assessee to the Income Tax Appellate Tribunal („Tribunal‟ for short) in ITA No.1896/Del/2010. The levy of the penalty was opposed on the ground that the surrender of income was made suo moto before any investigation, that there was no other evidence in the possession of the income tax authorities except the surrender, and that the levy of penalty without recording any finding o....
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....cealing the particulars of income or furnishing inaccurate particulars of the income. Explanation-1 is as below:- "Explanation 1.--Where in respect of any facts material to the computation of the total income of any person under this Act,-- (A) Such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Commissioner to be false, or (B) Such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him], then, the amount added or disallowed in computing the total income of....