2011 (11) TMI 737

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....e. We will first take up appeal for assessment year 2003-04 in ITA No. 1024/Kol/2010, the outcome of which will squarely be applicable to other two appeals for assessment years 2004-05 and 2005-06. 2. The only issue involved in this appeal is in respect of levy of penalty of Rs. 20,917/- u/s. 271(1)(c) of the Act, which was confirmed by the Ld. C.I.T.(A). The assessee filed his return for the assessment year under consideration showing total income of Rs. 2,58,778/-. Subsequently, in response to notice u/s. 148 of the Act, the assessee filed return showing income under the head 'other sources' amounting to Rs. 78,395/- in respect of the following :- a) Interest on NSC Rs. 43,880 b) Interest on Fixed Deposit Rs. 34,343   c) ....

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....ment, FDR, saving bank deposit etc. in his return of income. This is clearly a case where the assessee has concealed his income and which is liable for levying of penalty u/s. 271(1)(c). The fact that the assessee filed return of income in response to the notice u/s. 148 and included the undisclosed income in that return cannot absolve the assessee from this penalty because in the original return the undisclosed income had not been shown. This income had to be included by the assessee in the return filed u/s. 148 because it was detected by the department and the assessee did not have any choice but to accept this. The A/R has referred to a number of court cases and has claimed that for levying penalty u/s. 271(1)(c) the A.O. has to prove me....