TaxTMI 
TaxTMI 
TaxTMI 
2015 (12) TMI 114
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....the assessee under Section 260A of the Income Tax Act,1961 (in short, "the Act") against the order dated 7.11.2014, Annexure A.17 passed by the Income Tax Appellate Tribunal, Chandigarh bench 'A' Chandigarh in ITA No.737/CHD/2014 for the assessment year 2007-08, claiming following substantial question of law:- "Whether under the facts and circumstances of the case, the action for levy of penalty under section 271(1)(c) is unreasonable on the true and correct interpretation of the decision of CIT vs. Ram Sanehi Gian Chand, (1972) 86 ITR 724 (P&H) on the principle of law qua getting the 'advantage of surrendered amount' credited in books once having fulfilled the test of 'nexus, character'?" 3. A few facts relevant f....
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....ed 28.9.2011, Annexure A.8, the Tribunal dismissed the appeal. Still not satisfied, the assessee filed appeal in this Court being ITA No.87 of 2012 relying upon judgment of this court in CIT vs. Ram Sanehi Gian Chand, (1972) 86 ITR 724. Thereafter, notice for levy of penalty proceedings was issued on 13.4.2012 to the assessee. The assessee made written submissions. The Assessing Officer vide order dated 16.5.2012, Annexure A.10 imposed penalty of Rs. 6,53,882/-. Aggrieved by the order, the assessee filed appeal before the CIT(A). In the meantime, ITA No.87 of 2012 filed before this court was dismissed vide order dated 1.8.2013, Annexure A.12. The assessee filed appeal before the Apex Court against the order dated 1.8.2013 which was also dis....
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....at page 143 of the paper book which reads as under:- To The Joint Commissioner of Income tax, Kurukshetra Range, Kurukshetra Subject: survey under section 133A(1) of IT Act 1961 conducted at M/s Mahavir Trading Company, Kurukshetra on 19.1.2007. Respected Madam, This is in response to the survey conducted at the business premises of M/s Mahavir Trading Company at Kurukshetra on 19.1.2007 and discussed with your goodself. That during the course of survey proceedings certain discrepancies were found in the books of account, loose papers, stock of various products byproducts and various other records and documents. That the assessee firm voluntarily surrenders a sum of Rs. 14 lacs (Fourteen lacs) as additional income for the fi....
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....This clearly shows that the amount surrendered was nullified while filing return. However, later on assessee became wise and deposited the amount of Rs. 14 lacs in the bank and before us it was stated that the assessee purchased miscellaneous assets which were later on sold and the amount was deposited in the Bank. There is no evidence to show the existence of any miscellaneous assets therefore explanation given by the assessee is totally false. This is not a case of full disclosure of facts and therefore the ratio laid down in the case of CIT vs. Reliance Petroproducts Pvt. Limited 322 ITR 158 is also not applicable. In fact the decision of Hon'ble Punjab and Haryana High Court in case of Ramesh Chander Gupta vs. Income tax Appellate T....
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....f income, it could not be inferred that the said addition was on account of concealment so as to levy penalty under Section 271(1)(c) of the Act. There is no quarrel with the proposition of law. However, in the present case, the position being different as the appellant while surrendering Rs. 14 lacs had admitted the discrepancies in the books of account, loose papers, documents, stock, by-products etc., he cannot derive any benefit from the said decision. 8. Again in Ram Sanehi Gian Chand's case (supra) on which reliance had been placed by the assessee, it was observed by this Court as under:- "15. In our opinion as the income-tax authorities made additions to the assessable income of the assessee in the previous year as income from ....
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....t provide that when an assessee makes a voluntary disclosure of his concealed income, he had to be absolved from penalty. 9. We are of the view that the surrender of income in this case is not voluntary in the sense that the offer of surrender was made in view of detection made by the AO in the search conducted in the sister concern of the assessee. In that situation, it cannot be said that the surrender of income was voluntary. 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 cour....