TaxTMI 
TaxTMI 
2016 (1) TMI 404
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....ee has deposited cash amount in savings bank account. During the assessment proceedings it was found out that total cash deposit in two savings bank account was Rs. 26,62,750/- which was claimed to be out of sale proceeds of the clothes. She has further disclosed that the total purchases of clothes were Rs. 20,67,845/-. Since the turn over of the cloth business was not more than Rs. 40 lakhs, therefore, books of accounts was not maintained and appellant has not disclosed any income on account of this business in the return of income. However, she offered Rs. 1,38,836/- income u/s 44AF of the I.T. Act. However, during the assessment proceedings RS.5,00,000/- was offered under this head. Further, Ld. Assessing Officer added Rs. 33,128/- on ac....
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....elief that business income carried out under sole proprietorship was not to be part of individual income as the same was below the taxable income. After coming to know her mistake she approached a professional and filled her Revised Statement of Income including all the income i.e. Salary+Business Income+ Interest Income of Rs. 33128/- etc. and paid the due tax with interest amounting Rs. 60,000/-. Thus there is no concealment with regards to Business and other income as the assessee has filled her Revised Statement of Income and paid due tax before the Assessment proceedings started. It is also to be pointed out that the intention of the assessee to disclose the full facts was apparent from the fact that the assessee was asked to give deta....
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....iness or a crooked up story as pointed out by the ITO. Here it is also to noted that without the maintained records it was not possible to submit the cash flow statement and details of sales and Purchase to Id. ITO during the assessment proceedings. The details submitted by the assessee has been accepted by the assessing authority as the ITO did not specify any defects in them. The only facts that tlie assessee could not produce all sales/purchase bills, does not mean that the detail furnished is in accurate in any manner. These facts were also told to CIT, Appeal during the penalty proceedings. In spite of not having any shortcomings/discrepancies and to end the proceeding amicably, she had offered to surrender a sum of Rs. 5,00,000/- on a....
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....ment of income. On the facts and circumstances of this case the assessee's conduct cannot be said to be contumacious so as to warrant levy of penalty. 7.2 In this regard, I find that the facts and circumstasnces of the present case are similar and identical to the case laws cited by the Ld. Cousnel of the Assessee. 7.3 In the case of Devsons Private Ltd. vs. CIT 329 ITR 483 it has been held that figure arrived at by the AO pertaiing to the income of the assessee was the figure disclosed by the assessee himself. The ratio of the case was that the "mere omission from the return of an item of receipt does neither amount to concealment not deliberate furnishing of inaccurate particualrs. 7.4 In the case of CIT vs. Deeksha Holdings Ltd.....