TaxTMI 
TaxTMI 
2013 (6) TMI 728
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....ting the penalty of Rs. 34,00,000/- levied u/s. 271 ( 1 ) ( c) of the Act." 3. The brief facts of the case are that the assessee had filed its return of income for the present year on 30-09-2008 declaring total income at Rs. 22,41,580/-. Subsequently, a revised return was filed declaring total income of Rs. 1,21,59,560/-. The assessment was completed u/s 143(3) of the Act and the income was determined at Rs. 1,23,40,480/-. In this case, a survey operation u/s 133A of the Act was carried out on 30-09-2008 and Shri Babubhai K. Patel, one of the main persons had offered additional income of Rs. 1,00,00,000/- in the case of this assessee. The assessee firm accordingly included this income in the revised return of income filed by it on 24-10-....
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....een available to appellant despite the tax audit and benefit of relevant provisions of explanation for non levying of penalty would have been available to appellant. (b) During the course of survey nothing incriminating was found. No incriminating papers, evidences etc. were impounded. The statement of Sh. B. K. Patel reflect that appellant on account of time required to evidenced such liability, time and monetary consideration involved in litigation and other factors, made a discloser of additional income to buy peace of mind. The A. O. during the course of survey and thereafter has not pointed out any discrepancy or evidences to substantiate his contention about concealment of income. The A. O. simply contended that it is because of su....
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....ment in earlier years after considering various fact and submission of appellant including the fact that appellant case is subjected to tax audit year after year. During the course of survey, except the admission of Sh. B. K. Patel, nothing incriminating in respect of this matter was found - Even after the additional income disclosure, A. O. has not made any further inquiry for the balance of such liabilities. The appellant has admitted the additional income without identifying the name of such parties and year's to which they relate. This indicates the acceptance of department of the appellant's conditional discloser that the same is to buy peace of mind and there was no incriminating material with the department. The satisfaction of furni....
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....reme court judgment in the case of Sureshchandra Mittal (251 ITR 9) and Hon'ble Delhi High court judgment in the case of Alka Luthra v/s ACIT (37 SOT 282) are applicable in the case of appellant. Further the invocation of explanation 5A to 271 (1) (c) of the Act though curable in the appeal proceedings but still there is no ground on which a proper satisfaction can be drawn in the case of appellant for penalty proceedings in view of the fact that except the statement of Sh. B. K. Patel there are no evidence for concealment of income or malafide intention of the appellant to defraud the revenue and concealment of income. The appellant's reliance on the Hon'ble Mumbai ITAT order in the case of Shri Mithalal N. Sisodia HUF (supra) and Hon'ble ....