2017 (5) TMI 1361

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..... 2.The appeal is being filed inspite of low tax effect as the case is covered in exception (d) of Para 8 of CBDT Circular No.21/2015 dated 10.12.2015." 2. The Assessee has raised the grounds of appeal in ITA No.6437/D/2016 as under: "1. The CIT (A) has erred on facts and in law in deleting the penalty of Rs. 788/- on account of undisclosed foreign income levied u/s.271(1)(c) of the Act. 2.The appeal is being filed inspite of low tax effect as the case in exception (d) of Para 8 of CBDT Circular No.21/2015 dated 10.12.2015. 3. First of all we take up the appeal of the assessee in ITA No.6436/Del/2016. The brief facts of the case are that the assessee had filed return of income in response to notice issued under Section 153-A at ....

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....132 of the Income Tax Act 1961. This being so the claim of the appellant that the impugned disclosure was voluntary is not correct. The AO in view of these facts proceeded to impose penalty to the tune of Rs. 49,915/-. 4. Learned CIT(A) in fact deleted the penalty for the reasons mentioned in his order. 5. I have heard the rival contentions and perused the facts of the case. At the outset, ld. counsel for the assessee, Mr. Ved Jain, Advocate invited my attention and heavily relied upon the decision of Hon'ble Delhi High Court in the case of PCIT vs. Neeraj Jindal in ITA No.463/D/2016 dated 09.02.2017 where the relevant facts and decision are reproduced hereinbelow: "13. At the outset, it must be noted that pursuant to the search and sei....

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....assessee in order to escape from the provisions of Section 271(1)(c) of the Act. The taxability status of the assessee has been changed during the impugned year is a fact on record. It was submitted by the learned CIT(A) that the difference was attributable to withdrawal of set off of income earned from future and options against loss on share transfers. It was highlighted that the assessee had loss on share transfer and income from future options to the tune of Rs.l,21,539. The assessee in its original return filed under section 139(1) had set off the said income against the loss incurred. However, while filing return under section 153A, the same was withdrawn in view of the realisation that the same was not permissible as per law. The exp....

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....the Revenue in ITA No.6436/Del/2016 is dismissed. 8. Now we take up the appeal of the Revenue in ITA No.6437/Del/2016. The brief facts of the case are that the Assessing Officer has wrongly imposed penalty under Section 271(1)(c) to the tune of Rs. 788/-. The perusal of the penalty order shows that the assessee had filed return of income under Section 139(1) at Rs. 30,46,069/-. The said income was revised during the course of assessment proceedings to Rs. 30,38,938/-. The reasons for revising the income was on account of conversion of income from foreign assets amounting to US $529.74 at the higher rate of Rs. 50.88 i.e. Rs. 28,306 as against the correct conversion amount of Rs. 25,790. The assessee on being confronted with proposed penalt....