TaxTMI 
TaxTMI 
TaxTMI 
2013 (10) TMI 275
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....ho filed her return of income for A.Y. 2008- 09 on 19.11.2008 declaring total income of Rs. 37,534/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 7.12.2010 and the total income was determined at Rs. 21,92,890/-. 4. During the course of assessment proceedings, Assessing Officer noticed that Assessee had purchased an immovable property on 15.12.2006 and was registered on 03.04.2007. The said property was sold on 01.10.2007 that is within 1 year of its purchase and the capital gain arising on its sale was not disclosed by the Assessee in the return of income. The A.O. accordingly considered Rs. 21,55,360/- as undisclosed income of the Assessee and on the aforesaid addition,....
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....e penalty order show that no notice was issued during the course of assessment proceeding show causing the appellant about the fact that the capital gain has not been shown in the return and, therefore, she was liable for penal action. The appellant himself had acknowledged before the A. O. in response to the notice dated 26/07/2010 vide reply dated 25/08/2010 that she had invested Rs.35,00,000/- in purchase of property out of sale proceeds of land at Shela Village. Subsequently, the return was revised on 04/09/2010. It is therefore clear from above facts that the appellant has suo-moto revised the return of income and offered the capital gain on the sale of the property before any specific show cause which was issued by the A. O. The pena....
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....rm capital gain arising would not have been taxed. He further submitted that the act of power of Attorney holder was binding on the person giving power of Attorney. He thus supported the order of Assessing Officer. He also placed reliance on the decision of Ahmedabad Tribunal in the case of Kailashbhai Ambalal Shah vs. ITO (2011) 129 ITD 135 (Ahd). He also placed on record the copy of the aforesaid order. The Ld. A.R. on the other hand submitted that the return of income was filed by the power of Attorney holder and when the Assessee came to know about the non disclosure of capital gains in the return, she immediately filed the revised the computation and the taxes were also paid. He further submitted that the decision in the case of Kailas....
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.... (Ahmedabad - Trib.) Deputy Commissioner of Incometax v. Satish B. Gupta (2010) 42 SOT 48 (AHD.) Shankarlal Nathumal Uttamchandani vs. DCIT (1997) 91 Taxmann 222 (AHD.) (MAG.) ACIT v. Ashok Raj Nath (2013) 33 taxmann. Com 588 (Delhi-Trib.) 2 The AO on receipt of AIR carried out enquiry from bank The AO on receipt of AIR has not carried out any enquiry from the Registrar or the concerned authorities. 3 In this case, the power of Attorney Holder is the son of the appellant and hence knowledge of all activities of the POA is generally believed to be known to the appellant more particularly when the appellant was in the same city. In this case, the power of Attorney Holder is not a relative of the appellant and more over the appellant was....
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....mated by the bank In this case, the appellant had no knowledge about the fact that the POA has not offered the correct income including the capital gain. Hence, she could not be charged for any contumacious conduct. 7 The appellant was actively involved in business The appellant was a housewife and was staying in USA at the relevant time of transaction of sale of property. 7. We have heard the rival submissions and perused the material on record. It is an undisputed fact that the Assessee had earned short term capital gain on sale of immovable property, the capital gains was not disclosed in the return of income. It is also an undisputed fact that the return of income of the Assessee was filed by the power of Attorney holder of the Ass....
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....ed a show-cause notice to assessee on 12-5-2008 - In response to notice, assessee submitted a return on that date itself enclosing therewith a challan of Rs. 11.54 lakhs being taxes paid on 4-6-2008 and also declaring therein income of Rs. 22.78 lakhs being investment in FDRs - Assessing Officer did not accept said return as revised return on ground that it was filed beyond statutory time- limit prescribed under section 139 - Further, he held that return so filed was not voluntary as department had already detected concealment - Thus, Assessing Officer proposed an addition of unaccounted interest income and undisclosed investment in FD - He also imposed penalty under section 271(l)(c) which was confirmed by Commissioner (Appeals) - Whether ....