TaxTMI 
TaxTMI 
2017 (9) TMI 954
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....ircumstances of the case the learned ITO & the CIT(A) erred in : 1) Imposing penalty u/s 271(1)(c) amounting to Rs. 2,69,000/-. 2) Levying penalty inspite of the fact that law applicable for imposing the penalty u/ 271(1)(c) is the law in force at the time of filing of original return. The original return was filed on 03.03.2009 while the finance Act (No.2) of 2009 came in effect from 01.04.2009 passed in Lok Sabha on 27th July 2009 and in Rajya Sabha 29th July 2009 and assented on 19th August 2009 with retrospective effect 01.06.2007. 3) Ignoring the fact that explanation 5A of Section 271(1) was inserted by the Finance Act 2009, w.e.f. 01.06.2007 which is after the assessment year in question." 2. The grounds....
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....rily seen vis-a-vis return filed by the appellant, once, income itself is declared which is accepted as such under section 139 r.w.s. 153A of the Act, then, the question of there being concealment/furnishing of inaccurate particulars of income/undisclosed income, does not arise at all. In the present case, the entire undisclosed income has been offered for tax by the appellant in the return of income, which was subject matter of assessment before the Assessing Officer. The return filed by the appellant has been accepted as such by the learned Assessing Officer, without any variation. Therefore, in the absence of any undisclosed income being found in the assessment vis-avis the return filed, the issue of imposition of penalty does not arise.....
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....0/- was surrendered. Accordingly, based on the aforesaid disclosure made during the course of search and seizure operation, the appellant, in the return filed on 03.03.2009 pursuant to notice issued under section 153A of the Act declared income of Rs. 12,50,791/- including aforesaid additional income of Rs. 8,00,000/-. In the assessment completed by assessing officer vide order dated 17th July, 2009 passed under section 153C/153A of the Act, returned income filed by the assessee has been accepted as such. The learned assessing officer has levied penalty on the appellant u/s. 271(1)(c) of Income Tax Act, vide its order dated 19.03.2010. 5.2. There cannot be any dispute to the fact that once a return is filed pursuant to notice under secti....
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....ollows that concealment of particulars of income or furnishing of inaccurate particulars of income by the assessee has to be in the IT return filed by it. The assessee can furnish the particulars of income in his return and everything would depend upon the IT return filed by the assessee. The assessee can furnish the particulars of income in his return and everything would depend upon the IT return filed by assessee. This view gets supported by explanations 4 as well as 5 and 5A of Section 271. Obviously no penalty can be imposed unless the conditions stipulated in the said provisions are duly and unambiguously satisfied. Since the assessee was exposed during survey, may be, it would have not disclosed the income but for the said survey. Ho....
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....fering the additional income after search and in response to notice under section 148.of the Act issued by the Department?" The Court answered the above question in the affirmative. The Court held that no penalty uls 271(1)(c) of the Act could be levied where the revised return had been accepted and assessed at the hands of the appellant although the revised returns had been filed after a search under section 132 of the Act and after a notice had been under section 148 of the Act. v) Rajiv Garg 175 Taxman 184 (P&H) in the return filed in pursuance to notice under section 148 of the Act the appellant revised its claim one instead of offering for tax the amount of capital gain, he offered the entire sale proceeds as income. ....
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....s justified in upholding the order of the Commissioner of Income-tax (Appeals), whereby the penalty imposed under section 271(1)(c) of the Act by the Assessing Officer was ordered to be deleted." 5.4 Furthermore, levy of penalty has to be as per law applicable on the date of filing of the return and admittedly on 03.03.2009 when the return of income for assessment year 2006- 07 was filed by the appellant, the unamended provisions of Explanation 5A to section 271(1)(c) of the Act were on the statute. The question whether there was concealment of income and/or furnishing inaccurate particulars thereof by the appellant in the return of income filed on the said date has to be seen vis-a-vis, law as applicable on that date. In that view of th....