2012 (9) TMI 1016

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....ounds of appeal raised by the assessee in both the appeals are reproduced herein below for reference: AY: 2007-08 "1. The learned CIT(A) has erred in confirming the penalty u/s. 27(1) (c) of Rs. 62,000/- levied by the A.O." AY: 2008-09 "1) The learned CIT(A) has erred in confirming the penalty u/s. 27(1) (c) of Rs. 35,,000/- levied by the A.O." 2) The total disclosure or Rs. 98731/- consist of, Rs. 30750/- Investment in purchase of dollar Rs. 67981/- Maturity value of Post office recurring deposit in the name of minor daughter Rs. 98731/- Total The investment in post office recurring deposit of Rs. 67981/- was not found during search but declared by the assessee suo motto vide filing return u/s. 153....

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.... disclosure of Rs. 75,00,000/- on a round about basis on account of difference in stock of Fakirsons Pepcam Pvt. Ltd., of which the assessee is a Director. The showing of income of Rs. 1,76,600/- is based on lose papers found and seized during search and for this expenditure, no statement u/s. 132(4) with regard to admission of income represented by these loose papers was made. Hence, the contention of assessee that his case is covered by section 271AAA (2) is not acceptable. As regards contention of assessee that penal provisions of section 271 (1) (c ) are not applicable, it is submitted that this contention is not correct because the income of Rs. 1,76,000/- which was offered in the return filed in response to notice u/s. 153A was not sh....

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....ssessee carried the matter before the learned CIT(A), the learned CIT(A) observed that search was conducted in the case of the assessee after 01-06-2007, therefore the assessee's case, is not covered u/s 271AAA of the Act because on the date of search viz. 15-10-2008 the assessee had already filed return of income on 04-07-2008 and 10-07-2008 showing income at Rs. 3,75,220/- and Rs. 5,00,720/- without including the subsequent disclosed amount of Rs. 1,76,600/- and Rs,.98,641/- for both the assessment years. The assessee had filed revised return of income at Rs. 5,51,820/- and Rs. 5,31,470/- on 25-06-2010, i.e., only after the search, declaring the undisclosed income of Rs. 1,76,600/- and Rs. 30,750/-. The learned CIT(A) further considering ....

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....y, sister concerns, and cases of directors. It was argued that in the return filed on 25.6.2010 at an amount of Rs. 47,87,940 following amounts were declared under the head income from other sources: Diesel and petrol purchase of Rs. 15,048 Tanker Driver salary and incentives to employees of Rs.7,32,149 Unaccounted income Rs.7,47,197     And that the return of Rs. 47,87,940 filed on 25.6.2010 included that disclosure comprising Rs. 7,47,197. It was argued that as subsequent to search the appellant had offered disclosure in his return, which was accepted in the order passed u/s. 143(3) r. w. s. 153A (1) (b) dated 30.11.2010, no penalty was leviable in view of provisions of section 271AAA (2)."....