2017 (9) TMI 1029
X X X X Extracts X X X X
X X X X Extracts X X X X
....bha 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. (B) The Assessee craves leave to add, Alter or amend the grounds of appeal at & before the hearing." 2. Facts in brief of the case are that for the year under consideration the assessee filed its return of income under section 139(1) of the Income Tax Act, 1961 (in short 'the Act') before the Assessing Officer declaring a total income of Rs. 1,03,53,070/-. Pursuant to the search and seizure action under section 132 of the Act in the case of the assessee on 7/02/2008, notice under section 153A of the Act was issued. In response the assessee filed return of income on 17/07/2009 declaring total income of Rs. 1,04,53,070/- and the assessment under section 153A of the Act was also completed on same amount of income. The Assessing Officer initiated penalty proceeding under section 271(1)(c) of the Act. Before the Assessing Officer, It was claimed by the assessee that the additional income of Rs. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....instant case original return of income has been filed prior to the return filed in the case of Alok Bhandari (supra). In the said case the Tribunal has quashed the penalty under section 271(1)(c) of the Act and allowed the ground of the assessee. Relevant finding of the Tribunal is reproduced as under: "5. I have heard the rival contentions and perused the facts of the case that once a return is filed pursuant to notice under section 153A, the same is treated as return fded under section 139 of the Act [refer clause (a) of section 153(A)(91)]. Further, concealment/furnishing of inaccurate particulars of income/undisclosed income, has to be necessarily 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 le....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that once a return is filed pursuant to notice under section 153A, the same is treated as return filed under section 139 of the Act [refer clause (a) of section 153A(1)]. Further, concealment/ furnishing of inaccurate particulars of income/undisclosed income, has to be necessarily seen vis-a-vis return filed by the appellant Once, income it is declared which is accepted as such under section 139 r.w.s. 153A of 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 lor tax by the appellant-company in the return income, which was subject matter of assessment before assessing officer. The return filed by the appellant has been accepted as such by your assessing officer, without any variation. Therefore, in the absence of any undisclosed income being found in the assessment vis-a-vis the return filed, the issue of imposition of penalty does not, arise. 5.3 The reliance is placed on the following decision in this regard. i) It has been held in the decision of the Delhi Bench of the Tribunal in the case of Prem Arora vs. DCIT in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l was justified in holding that no penalty under section 271(1 )(c) of the Act could be levied for assessment years 1985-86, 1986-87 and 1987-88 even though the revised returns were filed offering 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 fled 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. Such additional income offered was assessed to tax. Therefore, the finally assessed income was the same as income declared by the appellant in the return filed in response to the notice issued under section 148 of the Act. The Court, while affirming the order of the Tri....