TaxTMI 
TaxTMI 
TaxTMI 
2016 (10) TMI 590
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....74 of the Act by ignoring the fact that the assessee disclosed in the return of income filed in response to the notice issued u/s 153A of the Act. The issue raised in second ground is with regard to non-recording the satisfaction by the AO as to concealment or furnishing in accurate particulars of income with reference to the said addition. 3. Facts of the case are that a search and seizure operation u/s 132 of the Act was carried out at the residential and business premises of the assessee on 11.4.2007, a group with which he is connected. In response to the notice issued u/s 153A, the assessee filed return declaring total income of Rs. 8,14,95,450/- including the undisclosed income of Rs. 28,71,601/-. During the course of search and seizu....
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....al of the assessee by deleting the penalty on two items of additions of Rs. 37,900/- and Rs. 9,83,701/- by sustaining and upholding the penalty on Rs. 18,50,000/- which was surrendered and declared by the assessee in the return of income declared in the return filed u/s 153A of the Act on the basis of seized material-Annexure-2 at pages 16 and 17 by observing and holding as under : "Keeping in view the facts and circumstances and the decisions of Hon'ble Tribunal, it is held that the assessee has concealed its income as per the seized page 17 of annexure A-2 which was not declared in the original return filed, therefore, it is held that the assessee has concealed the income to the tune of Rs. 18,50,000/-. Therefore, penalty levied u/s 271....
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....V/s ACIT in ITA No. 409/Mum/2008 dated 26.9.2012 (Mum Tribunal) Finally, the ld.AR prayed that since the assessee has declared an income in the return of income filed in response to the notice issued u/s 153A and paid due taxes, the penalty deserved to be deleted in view of the ratio laid down in the above said decisions. 5. The ld. DR heavily supported the orders of authorities below and submitted that the assessee has not declared income in the original return filed by him and during the course of search and seizure proceedings surrendered undisclosed income and declared the same in the return of income u/s 153A of the Act and paid due taxes thereon, which amounted to concealment of income for which the penalty has been levied by the AO....
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....AR primarily were on the point that since the income has been shown in the return of income filed u/s 153A of the Act and due taxes were paid thereon has been accepted by the AO during the assessment proceedings and therefore once, there is no difference between the returned income and the assessed income no penalty u/s 271(1)( c ) could be invoked. In the case of Prem Arora (supra), the Delhi bench of the Tribunal has held as under : "Section 271(1)(c), read with section 153A, of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 2004-05 - Whether for purpose of imposition of penalty under section 271(1)(c) resulting as a result of search assessments made under section 153A, original return of income filed u....
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....ome [Explanation 5] - Assessment year 2002-03 - Assessee received two gifts which were credited to its capital account - Said gifts were not included in return filed under section 139 but in return filed in response to notice under section 153C - Assessing Officer levied penalty under section 271(1)(c) on ground of non-disclosure of said gifts in return filed under section 139 - Whether if case of assessee falls within mischief of Explanation 5, then only department can link levy of concealment penalty to action of assessee of not disclosing income in return filed under section 139 - Held, yes - Whether Explanation 5 could not be applicable to assessee's case as it had not been found to be owner of any of asset mentioned in Explanation ....