TaxTMI 
TaxTMI 
2014 (6) TMI 947
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.... that the assessee had filed original return dated 12.10.2004 for a sum of Rs. 13,95,200/- which was revised after a survey was conducted on 09.02.1995 by filing a revised return declaring a sum of Rs. 30,45,200/- and on further enquiries, assessee filed a further revised return on 20.04.2005 declaring a sum of Rs. 1,16, 46,350/- which clearly showed concealment of income and consequently recorded a perverse finding?" 3. The assessee is a merchant of Iron and Steel. The assessee filed his return of income on 12-10-2004 declaring the income of Rs. 13,95,200/-. A Survey was conducted in his business premises on 9-2-2005 under Section 133A of the Act. The assessee filed revised return on 15-2-2005 declaring the income of Rs. 30,45,200/- which included the additional income of Rs. 16,50,000/- offered at the time of survey on account of difference in valuation of stock and expenses of staff and coolie. At the time of assessment, the Assessing Officer asked the assessee for filing confirmation letters from the Creditors and also to produce the Creditors. Some of the persons who were shown as its creditors in the return of income filed by the assessee had confirmed the balances and respo....
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....turn on 20-04-2005 showing the income of Rs. 1,16,46,360/-. The Assessing Authority passed an order accepting the second revised return. The order itself shows that the assessee paid all taxes due by it on this re-revised return of income. The order further discloses that the assessee appeared before the Assessing Authority on various dates and filed all the details and clarification sought for. Therefore, he accepted the income of Rs. 1,16,46,360. However, he issued notice under Section 271(1)(c) of the Act for penalty. 4. After considering the objections filed by the assessee and taking note of the various judgments relied upon by him, the Assessing Authority held that the assessee has committed breech of duty and concealed its particulars of income and furnished inaccurate particulars in the return of income filed on 12-10-2004 declaring the income of Rs. 13,95,200/- and so levying of penalty is the only option open to him as the ultimate disclosure came to Rs. 1,02,51,160/-. He proceeded to levy penalty of Rs. 43,00,000/- as this being the first instance of default and levy of penalty under clause (c) of sub-section (1) of section 271 of the Act. Aggrieved by the said order, t....
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....sallowance. No incriminating material was found at the time of survey. Therefore, the ingredient in respect of concealment of income is not present. Accordingly, tribunal allowed the appeal setting aside the order of imposing penalty and cancelled the order of the Assessing Officer. Aggrieved by the said order, the Revenue is in appeal before this court. 6. Learned counsel appearing for the Revenue assailing the impugned order contended that when admittedly after the survey, a revised return was filed on 15-2-2005 showing the income as Rs. 30,45,200/-, it only represents the concealed income. Further, the assessee also filed a second revised returns on 20-4-2005 showing the income of Rs. 1,16,45,350/-, which again shows the suppression of income by the assessee. Merely because it paid the tax for purchasing peace from the department is not sufficient to absolve it from the liability of paying penalty as held by the Apex Court. In view of the aforesaid admitted facts, if the survey had not been conducted, there would not have been two revised returns and therefore, he submits that a case for imposing penalty is made out and the Tribunal was in error in setting aside the well consid....
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....enses on staff and coolie and accordingly, filed a revised return on 15-2-2005 showing the income as Rs. 30,45,200/-. Thereafter, in the course of investigation, the assessee had produced all his books of accounts, invoices, check post certificates, delivery notes showing supplies. When the Assessing Authority insisted that he should secure confirmation letters from the creditors and also produce them before him, the assessee was successful in getting the confirmation letters from several creditors and was able to produce them before the Assessing Officer. Only in respect of six creditors, it could not secure their presence. When the assessee pleaded its inability, it appears, the higher officers in the department asked him to write off the said amount and offer the said amount for tax. Accordingly, the assessee filed a second revised returns on 20-4-2005 showing the income as Rs. 1,16,45,350/-.Immediately it paid the tax as well as the interest due thereon. It is thereafter, the Assessing Authority proceeded to pass an order on 14-07-2005 under Section 143(3) of the Act. 9. This court had an occasion to consider the scope of Section 271(1)(c) of the Act in the case of CIT v. Manj....