TaxTMI 
TaxTMI 
2016 (7) TMI 503
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....ns". The assessee filed a return of income for the assessment year 2009-10 on 30.3.2010, admitting a total income of Rs. 8,51,809/-. The A.O. has completed the assessment u/s 143(3) of the Income-Tax Act, 1961 (hereinafter called as 'the Act') by determining total income of Rs. 9,51,809/-. 3. Subsequently, there was a survey conducted in the case of M/s. VNC-GEV Housing Limited, it was found that assessee along with two others purchased two acres of land at Madhurawada, Visakhapatnam on 29.12.2006 for a total consideration of Rs. 90 lakhs, in which the assessee is having 1/3rd share. It was also found that the assessee along with two co-owners entered into a Development Agreement on 15.7.2008 with M/s. VNC-GEV Housing, for the development ....
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....ase of concealment. Accordingly, penalty u/s 271(1)(c) of the Act was levied. 5. On being aggrieved, assessee carried the matter in appeal before the CIT(A). 6. It was submitted before the CIT(A) that in so far as admission of capital gains, the law is not clear that whether the capital gain can be charged on the date of execution of development agreement or receipt of sale consideration. Under those circumstances, no penalty can be levied. 7. The assessee filed revised return on 16.7.2012 admitting total short term gain of Rs. 1,92,10,735/- and the notice u/s 148 of the Act was served on 20.7.2012 and submitted that the assessee has offered the short term capital gain voluntarily and the revised return filed by the assessee was accepted....
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....sessment was completed accepting the short term capital gain declared by the assessee u/s 143(3) r.w.s. 147 of the Act and submitted that the revised return filed by the assessee is voluntary and there is no concealment of income, therefore no penalty can be levied. Ld. A.R. also has pointed out that the assessee along with the original return filed a balance sheet, wherein he has disclosed the amount of Rs. 75,01,215/- received from the developer (paper book page no.14). The Ld. Counsel for the assessee has also pointed out from the paper book page no.35 that in response to A.O's question no.4 it is replied that all the books of accounts were filed for his verification on balance sheet and also profit & loss account were already submitted ....
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....has issued a notice u/s 148 of the Act dated 12.7.2012 served on the assessee on 20.7.2012. Meanwhile, the assessee has filed revised return of income on 16.7.2012 by admitting short term capital gain and the same was accepted by the A.O. and assessment was completed u/s 143(3) r.w.s. 147 of the Act by order dated 12.3.2014. 14. Subsequently, A.O. has initiated the penalty proceedings u/s 271(1)(c) of the Act for concealment of income on the ground that the assessee has failed to offer short term capital gains derived from the property given for development and called the explanation. The assessee has explained before the A.O. that the short term capital gain offered by me by filing a revised return dated 16.7.2012 is voluntary, which is o....
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.....7.2012. However, the revised return of income filed on 16.7.2012 before receiving the notice issued by the A.O. u/s 148 of the Act and it is submitted that the revised return filed by the assessee is voluntary. The A.O. has acted upon the return filed by the assessee accepted the capital gains. Therefore, the A.O. cannot initiate the proceedings on the ground that assessee has concealed the income. We find that there is a lot of force in the argument of Ld. Counsel for the assessee. That apart the assessee has disclosed the amount received by him along with the return of income, which was also explained to the A.O. Keeping in view of the above, by considering the facts and circumstances of the case, we are of the opinion that it is not a f....