TaxTMI 
TaxTMI 
2017 (2) TMI 806
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....ing to Rs. 6,58,573/- u/s 271(1)(c) of the Income Tax Act, 1961." 3. Brief facts of the case are that during the year under consideration, the assessee has shown income from salary, capital gains and other sources. During the course of assessment proceedings u/s 143(3) r.w.s. 143(2) of the Act, the A.O. observed from the capital account of the assessee that the assessee has credited an amount of Rs. 19,37,552/- as Management bonus from M/s. Fairdeal Multimedia Pvt. Ltd. but the same was not offered for taxation. The assessee was asked by the AO in quantum assessment proceedings to furnish details of Management bonus and was also asked to justify that why the same was not offered for taxation . The assessee in reply submitted the following during the quantum assessment proceedings:- "During the year under consideration I received the management bonus of Rs. 19,37,552/- from Fairdeal Multimedia Pvt. Ltd. The said bonus is an outcome of the terms and conditions agreed into with the foreign company at the time of takeover of Fairdeal Multimedia Pvt. Ltd.. The terms and conditions for eligibility of management bonus was that as per the audited financials of Fairdeal Multimedia Pvt. Lt....
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....see. In reply, the assessee submitted as under:- "With reference to the above, I have received the above notice and state as under: I have properly disclosed the facts by submitting revised computation of Total income alongwith full payment of Tax including interest thereon before your honour has asked the question on 11th Oct, 2011 as I have properly declared the income by myself voluntarily by filing revised sheet and paid the entire tax including interest. I have not hide any facts or my income and hence the provisions of the section 271(l)(c) of the income tax liability is not applicable in my case. The penalty u/s. 271(1)(c) may be levied if any person has: a) Concealed the particulars of his income or b) Furnished inaccurate particulars of his income. Accordingly concealment implies some deliberate act on the part of the assessee in with holding the true from the authorities, mere omission from the return of an item of receipt does neither amount into concealment nor deliberate furnishing of inaccurate particulars of income unless and until there is some evidence to show or some circumstances found which it can be gathered that the omission was attributable to an intention....
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....he assessee received management bonus of Rs. 19,37,552/- from M/s Fairdeal Multimedia Private Limited on which tax was deducted at source by the employer at maximum marginal rate of tax but the same was not disclosed in return of income filed with Revenue . The assessee submitted that during course of scrutiny proceedings in quantum assessment, the assessee submitted revised computation of income before being asked by the AO and included said management bonus of Rs. 19,37,552/- in his revised income and also took credit of tax deducted at source by the employer which was deducted at maximum marginal rate on the entire amount of management bonus and hence there was no additional liability to pay tax by the assessee. It was submitted that the assessee had to file revised computation of income during scrutiny proceedings instead of filing revised return of income to include management bonus of Rs. 19,37,552/- in its income before the AO as since the assessee filed original return belatedly u/s 139(4) of the Act on 26-02-2010 as against the due date of filing of return of income u/s 139(1) of the Act which was 31-07-2009, and hence the assessee could not file revised return of income u....
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....x was duly deducted by the employer M/s Fairdeal Multimedia Private Limited at source at maximum marginal rates and no prejudice was caused to Revenue. It was submitted that the assessee derived no benefit by not declaring the said management bonus as income in the return of income filed for assessment year 2009-10 as the tax was duly deducted at source at the maximum marginal rates. It was submitted that the assessee filed revised computation of income during the course of assessment proceedings u/s 143(3) read with Section 143(2) of the Act, wherein said management bonus of Rs. 19,37,552/- was added to income and also credit for tax deducted at source at marginal rate was taken and hence no prejudice is caused to the Revenue as all the due taxes were paid by the employer M/s Fairdeal Multimedia Private Limited while paying the bonus amount of Rs. 19,37,552/-. Thus, it is submitted that it is a bonafide mistake which has happened due to the bonafide belief of the assessee that since the bonus amount has been determined and quantified only in the month of September, 2009 based on finalized audited accounts of employer M/s Fairdeal Multimedia Private Limited for financial year 2008-....
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....Rs. 19,37,552/- payable to the assessee at the maximum marginal rate on the entire amount of bonus. The assessee did not included the said management bonus of Rs. 19,37,552/- in return of income filed by him with the Revenue which return of income was filed belatedly u/s 139(4) on 26.02.2010 while due date of filing of return of income was 31-07-2009. It is only when pointed out by the A.O. on 11.10.2011, the assessee included the said management bonus of of Rs. 19,37,552/- payable to the assessee in the revised computation of income filed with the AO on 21.10.2011. The assessee has offered an explanation that since management bonus was quantified only in the month of September 2009 by M/s Fairdeal Multimedia Pvt. Ltd. based on their finalized /audited accounts for the financial year 2008-09 which got finalized only in the month of September 2009, the assessee has submitted an explanation that it was under a bonafide belief that the said income is to be included and offered for taxation as income for assessment year 2010-11 and in any case tax was deducted at source at the maximum marginal rate on the said management bonus by employer M/s Fairdeal Multimedia Pvt. Ltd. on behalf of ....