TaxTMI 
TaxTMI 
2016 (7) TMI 844
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....e Tax Act, 1961." 3. The brief facts of the case are that in this case DGIT (Inv.), Mumbai had received the information from Pune Directorate regarding bogus gifts taken by the Shah group during the course of search in the month of October, 2002. There were many beneficiaries of the said bogus gifts. The Pune Directorate had identified the beneficiaries of these bogus gifts of Mumbai region and the assessee is one of the beneficiaries who had received Rs. 5 lacs. On the basis of the information received, the assessee's case was reopened u/s 147 of the Act by recording of reasons for re-opening the assessment u/s. 147 of the Act , and notice u/s. 148 of the Act dated 14.07.2005 was issued to the assessee. The assessment was completed by the AO u/s 143(3) r.w.s. 147 of the Act vide assessment orders dated 28th August, 2006 whereby the said amount of Rs. 5,00,000/- of gift received by the assessee and Rs. 33/- being interest on saving bank account was brought to tax by the Revenue , albeit the assessee had already filed revised return of income with the Revenue on 21-10-2004 i.e. prior to issue of notice u/s 148 of the Act on 14- 07-2005 whereby the said amount of Rs. 5,00,000/- was....
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....made to the income declared in the revised return of income filed with the Revenue. The A.O., however, treated the additional income as concealed income and thus penalty of Rs. 1,45,089/- u/s 271(1)(c) of the Act was levied by the A.O. vide penalty orders dated 26- 02-2007 passed u/s 271(1)(c ) of the Act. 4. Aggrieved by the penalty order of the A.O. dated 26-02-2007 passed u/s 271(1)(c) of the Act, the assessee filed his first appeal before the learned CIT(A). 5. Before the learned CIT(A), the assessee reiterated the same submissions what were made before the A.O. and submitted that the assessee has filed his original return on 23rd July, 2002 and the revised return on 21st October, 2004. The additional income of Rs. 5,00,000/- was duly offered by the assessee in the revised return of income filed on 21st October, 2004 as miscellaneous income under the head 'income from other sources' and due taxes were also paid to the Revenue. The notice u/s 148 of the Act was issued on 14-07-2005 which is subsequent to the filing of revised return by the assessee on 21-10-2004. The contention of the assessee was not acceptable to the learned CIT(A). The learned CIT(A) held that the re....
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...., the ld. Counsel prayed that no tax has been evaded by the assessee as there is no concealment of income u/s 271(1)(c) of the Act and no penalty can be levied. 8. The ld. D.R., on the other hand, relied upon the orders of the learned CIT(A). 9. We have considered the rival contentions and also perused the material available on record including case laws relied upon. We have observed that the assessee has filed his original return of income with the Revenue for the impugned assessment year on 23rd July, 2002 u/s 139(1) of the Act whereby the income declared was Rs. 1,00,820/-. There was a search operation u/s 132(1) of the Act conducted by Pune Directorate in the case of Shah Group in the month of October, 2002. It was found by the Revenue during the searches that the said Shah group has received bogus gifts , and it was revealed that the assessee is also one of the beneficiary of bogus gifts of Rs. 5,00,000/- . The list was prepared by Pune Directorate for Mumbai region consequent to the search on Shah Group in October 2002 and the assessee's name also figured in the said list being beneficiary of bogus gift received of Rs. 5,00,000/- . Thus, as per list prepared by Pune Directo....
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....gift of Rs. 5,00,000/- as miscellaneous income under the head 'income from other sources' as no explanation whatsoever was submitted by the assessee about these alleged bogus gifts of Rs. 5,00,000/- nor the assessee filed any appeal against the quantum assessment orders dated 28- 08-2006 u/s 147 read with Section 143(3) of the Act declaring the said income by the Revenue as not voluntary and unaccounted income of the assessee and the said quantum assessment order reached its finality. Thus keeping in view the factual matrix of the case, the revised return of income filed by the assessee on 21-10-2004 was not a voluntary act of the assessee rather when the assessee was cornered after detection by the Revenue during the course of searches on Shah group in October 2002, the said revised return probably was filed by the assessee on 21-10-2004 , albeit notice u/s 148 of the Act was issued by Revenue later on 14-07-2005 as per the facts as emerging from the records before us. The assessee did not offer any explanation whatsover about the surrender of the bogus gift of Rs. 5,00,000/- during the assessment proceedings u/s 143(3) read with Section 147 of the Act nor any explanations with re....