TaxTMI 
TaxTMI 
TaxTMI 
2013 (10) TMI 1120
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....on 271(1)(c) of the Income Tax Act. Since a common issue is involved in both the appeals the same are being disposed of with this common order. For the sake of convenience the facts have been taken from ITA No.4594/M/12. 2. The assessee is a trust formed under the laws of United State of America (USA) and a tax resident of USA. It is registered as a sub-account of Fidelity Management & Research Company, a Foreign Institutional Investor registered with SEBI. During the previous year, the assessee entered into various transactions for purchase and sale of securities in India resulting in an income of Rs.1,37,20,039/-. The assessee treated the same as capital gains and filed a return by paying the taxes under section 115 AD of the Income Tax ....
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....in the assessee's case was pronounced by the AAR after the expiry of the due date to revise its return of income for AY 2004-05, the assessee could not revise its return of income to adopt the position as per the ruling of the AAR in its own case. Further, the assessee's case was not selected for scrutiny under section 143(2) of the Act, where otherwise, additional information (for the revised position) based on these developments could have been submitted. The assessee therefore admitted to a taxable income in the nature of capital gains in the 148 proceedings. After bringing the same to tax the AO has also levied penalty for concealment of income as the assessee had claimed in its revised return that its income is not chargeable to tax. ....
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....laimed in its revised return that the income is not taxable on 31st of March 2005. Thereafter the AAR in their own case gave a ruling against the assessee in January 2007. Though the assessee had made a claim for refund in the revised return, it did not come forward to withdraw the claim and it is true that if the department had not issued the notice under section 148 the income would have remained untaxed. However, as submitted by the assessee, the assessee has made full disclosure in the return of income at the time of filing the revised return and the time limit for revising the return had already expired when the AAR ruling was delivered. There was no legal obligation on the assessee to alert the department about its claim in earlier ye....
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....ofits may constitute business profits and as the assessee does not have any permanent establishment in India, the profits will not be taxable in India. Therefore they filed revised return claiming the income as exempt and appending a note explaining the reason for the same. This was not accepted and the Assessing Officer has levied a penalty of Rs.30640490/- on the ground that the assessee has made a false claim. The assessee has not given any inaccurate particulars. The total income arising from sale of securities at Rs.9,28,49,984/- has been disclosed. The assessee has also disclosed that in the original return this has been returned and for the reasons explained along with the revised return the profits were considered as business profit....