2013 (11) TMI 14

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....e assessment year 2004-05 on 27th October, 2004, declaring an income of Rs. 16,17,040/- along with Tax Audit Report. The case was selected for scrutiny and notices were issued Under Sections 143(2) and 142(1) of the Income Tax Act. During the course of the assessment proceedings, it was noticed by the Assessing Officer (AO) that certain documents comprising of share application forms, bank statements, memorandum of association of companies, affidavits, copies of Income Tax Returns and assessment orders and blank share transfer deeds duly signed had been impounded. These documents had been found in the course of survey proceedings Under Section 133A conducted on 16.12.2003 in the case of M/s. Marketing Services (a sister concern of the Asses....

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....ent of income/furnishing of inaccurate particulars of income by the Assessee and that the surrender of income was a conditional surrender before any investigation in the matter. The AO did not accept those contentions and imposed a penalty of Rs. 14,61,547/- Under Section 217(1)(c) of the Act. The Assessee challenged that order before the Commissioner of Income Tax (Appeals) by filing Appeal No. 2/07-08, which was dismissed vide order dated 17.2.2010. The Assessee filed an appeal being ITA No. 1896/Del/10 before the Income Tax Appellate Tribunal, Delhi. The Tribunal recorded the following findings: The Assessee's letter dated 22.11.2006 clearly mentions that "the offer of the surrender is without admitting any concealment whats....

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....er 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 such person as a result thereof shall, for the purposes of Clause (c) of this Sub-section, be deemed to represent the income in respect of which particulars have been concealed. 7. The AO, in our view, shall not be carried away by the plea of the Assessee like "voluntary disclosure", "buy peace", "avoid litigation", "amicable settlement", etc. to explain away its conduct. The question is whethe....

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..... AO during the course of assessment proceedings has noticed that certain documents comprising of share application forms, bank statements, memorandum of association of companies, affidavits, copies of Income Tax Returns and assessment orders and blank share transfer deeds duly signed, have been impounded in the course of survey proceedings Under Section 133A conducted on 16.12.2003, in the case of a sister concern of the Assessee. The survey was conducted more than 10 months before the Assessee filed its return of income. Had it been the intention of the Assessee to make full and true disclosure of its income, it would have filed the return declaring an income inclusive of the amount which was surrendered later during the course of the ass....