2014 (7) TMI 1218

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....was accepted as such in the assessment made u/s 153A / 143(3) of the Act, there was no question of levy of penalty u/s 271(1)(c) of the Act. He submitted further that the issue raised is fully covered in favour of the assessee in almost similar facts by the following decisions :- i) Prem Arora vs. DCIT (2012) 24 Taxman.Com 260 (Delhi ii) Neeraj Lal T. Gale\a (HUF) vs. ACIT (2013) 33 taxman. Com 620 (Mumbai) iii) Suman Rajeja vs. DCIT ITA No. 4411 and 4412/Del/2011 (asstt. years 2-001-02 and 2002-03 order dated 25.5.2012 iv) Nutan Gupta vs. DCIT ITA 4728 to 4731/Del/2011 (asstt.years 2001-02 to 2006-07) order dated 24.8.2012 v) Shri Kiran Shah vs. ACIT ITA Nos. 5919 to 5925/Mumbai/2011 for asstt. ....

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.... 143(3) and disallowance of Rs. 15,000/- was made out of the payment made to the creditors. In all these years asstt. u/s 153A / 143(3) were framed on the income undisclosed by the assessee in its return of income filed in response to the notice issued u/s 153A of the Act. During the course of appellate proceedings it was explained by the assesee that by Hoover Building (P) Ltd. flats are sold in finished and semi finished conditions. Finished flats are standardised. Some customers had purchased semi finished flats and wanted extra work for finishing. In order to maintain customers relations and good will and also to provide services with the underlying objective of selling the flats the said work for the customers on no profit no loss basi....

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....ssing related provisions in detail, the Tribunal has come to the conclusion that for the purpose of imposition of penalty u/s 271(1)(c) as a result of search assessments made u /s 153A, original return of income filed u/s 139 cannot be considered. It was held that concealment of income has to be seen with reference to additional income brought to tax over and above the income returned by the assesee in response to notice issued u/s 153A and therefore once return of income u/s 153A is accepted by AO, it can neither be a case of concealment of income nor furnishing of inaccurate particulars of such income. In that case search was conducted on 22.11.2006 and cash was found from possession of the assessee. The assessee has drawn cash flow state....