2017 (3) TMI 1260

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....enue urges the following identical question of law for our consideration, in both the appeals : "(i) Whether on the facts and in the circumstances of the case and in law, the Tribunal is right in deleting the penalty levied u/s 271(1)(c) of the I.T. Act, by not considering the fact that, failure to offer income as per the directions given by the Tribunal before filing of return constitute, furnishing inaccurate particulars of income within the meaning of Section 271(1)(c) of the I.T. Act ? 3. The respondent assessee engaged in the business of constructing and selling flats. On 31st October, 2002, the respondent assessee filed its return of income for Assessment Year 2002-03 declaring a loss of Rs. 8.26 lakhs. On 27th November, 2....

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.... the subject assessment years, the Tribunal by an order dated 30th July, 2009 disposed of the respondent assessee's appeals from the two orders dated 14th February, 2006 passed under Section 143(3) of the Act for Assessment Years 2002-03 and 2003-04 by the Assessing Officer. The order dated 30th July, 2009 of the Tribunal directed that the profit should be estimated at 5% of recoveries in respect of the three projects which were subject matter for consideration for both the assessment years. 6. Consequent to the order dated 30th July, 2009 of the Tribunal, the respondent assessee filed a revised computation of income in the proceedings under Section 153A of the Act, determining the profit at 5% of the recoveries for the subject asses....

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....the same and imposed 100% penalty of the tax evaded by two orders dated 30th June, 2011 i.e. Rs. 10.71 lakhs for A.Y. 2002-03 and Rs. 20.41 lakhs for A.Y. 2003-04. 8. Being aggrieved, the respondent assessee filed appeals to the Commissioner of Income Tax (Appeals) [CIT(A)]. By common order dated 31st October, 2012, the CIT(A) allowed the respondent assessee's appeals for Assessment Years 2002-03 and 2003-04. This on holding that the estimated income at 5% of the recoveries made in the revised computation was only as per the order dated 30th July, 2009 of the Tribunal i.e. much after filing its return of income on 17th February, 2009. 9. Being aggrieved, the Revenue carried the issue in appeal to the Tribunal for both the assessme....