TaxTMI 
TaxTMI 
TaxTMI 
2013 (7) TMI 660
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....d in ITA.No.2142/Mds/2010 for the assessment year 2005-06. "1. Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was right in law in confirming penalty levied by the assessing officer under Section 271(1)(c) of the Income Tax Act, 1961 ? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in confirming the penalty levied by the assessing officer under Section 271(1)(c) of the Income Tax Act, 1961, even though the Commissioner of Income Tax (Appeals) deleted the penalty since the assessee has not concealed any income nor filed any inaccurate particulars of income ? 3. Whether Explanation 5 below to Section 271(1)(c) is applicable to the ....
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.... expenditure incurred by the assessee were the amounts paid by cheques and the transactions of the assessee were reflected in the books of accounts. The Assessing Officer pointed out that the firm was formed on 16.12.2003 and was dissolved on 17.02.2006. During the year under consideration, property at Perungudi was negotiated by the assessee. The property belonged to M/s.SAS Engineering Pvt Ltd. A tripartite agreement was entered into between the assessee, M/s.Vishranthi Homes Pvt Ltd and with M/s.SAS Engineering Pvt Ltd, by which the income from development of the property was to be shared by the parties. The Assessing Officer pointed out that the books of accounts of the assessee revealed the purchase price of the property and the relate....
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.... Aggrieved by the said order, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who allowed the assessee's appeal and pointed out that as on the date of search i.e, 26.10.2005, the due date for filing the returns had not fallen due and the assessee filed its return of income on 30.08.2006 and paid the tax on the due date. He pointed out that the delay in the filing of the return was due to the seizure of computer and other materials by the Department and only on getting the books of accounts audited under Section 44AB of the Act, which was also accepted by the Assessing Officer, that the assessee could file the return. In the circumstances, accepting the contentions of the assessee that there was no concealment of....
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.... show that the assessee had concealed income; mere payment of tax, that too after search, would not exonerate the applicability of the penal provisions. The Tribunal further viewed that even though the return was accepted, yet, the penalty proceedings and assessment proceedings being different, penalty was leviable. Thus, the Revenue's appeal was allowed. Aggrieved by this, the present Tax Case Appeal has been filed by the assessee. 7. Learned Senior counsel appearing for the assessee submitted that when the Revenue had accepted the returned income holding that the transactions were reflected in the books of accounts and that the search was only in the partner's premises and there was no allegation that the assessee had not maintained the ....
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....als against the firm. Admittedly, search was conducted on 26.10.2005 in the residential premises of one of the partners. Even in the course of search, if certain materials were seized relating to the assessee, yet, nothing was spoken to as regards the non-maintenance of the books of accounts or absence of books of accounts relating to the transactions of the firm. Admittedly, as on the date of search in the partner's premises, the books of accounts of the firm were not found. The absence of books of accounts of the firm in the partners' residence, certainly would not lead to a further inference that there were no books of accounts of the firm maintained by the assessee. 10. Given the fact that the search itself was conducted on 26.10.2005 ....
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....f imposition of a penalty under clause (c) of sub-section (1) of this section, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income unless - (1) such income is, or the transactions resulting in such income are recorded , - (i) in a case falling under clause (a), before the date of the search ; and (ii) in a case falling under clause (b), on or before such date; in the books of account, if any, maintained by him for any source of income or such income is otherwise disclosed to the Chief Commissioner or Commissioner before the said date ; or (2) he, in the course of the search, makes a statement under sub-section (4) of section 132 that any money, bullion, jewellery or other valuabl....