TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 200
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....Public Holiday (Muharram), the last date for filing an appeal ends on 05.11.2014 and though the assessee was eager to file the appeal, it was only on account of the absence of part-time secretarial assistant attached to Shri V. Raghavendra Rao, advocate, there was a delay in filing the appeal. It was thus submitted that the delay was due to a 'reasonable cause'. 4. On the other hand, Ld Departmental Representative submitted that when the assessee is stationed in Hyderabad and having signed the appeal papers on 11th day of November 2014, it could have been filed on the same date or at best on 12th November 2014, when part-time secretarial assistant was available in the office whereas, there was a further delay on the part of the assessee. It was the contention of the Ld. DR that though no pedantic approach can be taken in the matters of condonation of delay, it is the duty of the assessee to explain each day's delay whereas in the instant case, despite sufficient delay, assessee has not taken initiative to file the appeal on time. Even as per the petition, the appeal papers were ready by 11th November, 2014 but the same were not filed immediately. 5. I have carefully considered th....
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....avoid protracted litigation and for smooth closer of investigation it can only be treated as a 'voluntary admission' at the search and it cannot be branded as 'concealment of facts or income'. 7. Since the Assessing Officer was of the view that the reasons given therein are far from reality, another opportunity was given to offer a credible explanation as to why penalty u/s 271(1)(c) should not be levied. The assessee again submitted that the undisclosed income was admitted to buy peace and also to settle the issue voluntarily without any protracted litigation though the loan amount was supported by sources such as a bank loan and other sources of income. It was also contended that he is entitled to immunity from penalty when the income is admitted during the course of search proceedings. 8. A.O. did not accept the contention of the assessee. He observed that the assessee has not offered income during the course of search proceedings so as to claim immunity from penalty. He also noticed that the assessee has not substantiated the claim even at the assessment stage and it was accepted only when the modus operandi was revealed during the finalisation of appellate proceedings. There....
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....tion is with regard to immunity from penalty in search cases if the income is offered to buy peace whereas this aspect was considered in depth by the Assessing Officer as well as the Ld. CIT(A) to hold that it was not offered voluntarily and rather contested in quantum proceedings till it was realised that it was difficult to prove it's case further. 12. Aggrieved, assessee preferred an appeal before the Tribunal. 13. Ld Counsel for the assessee filed three formal grounds of appeal i.e., Ld. CIT(A) is not justified in not accepting the source of investment and also contested that the income has been voluntarily offered to tax though the A.O. had no material with him except some lose papers showing transactions. Additional grounds were also made part of the grounds of appeal annexed to Form No.36 wherein it was stated that the provision of section 153C does not apply to the assessee's case because no bullion, jewellery valuable article or thing or account books or documents belonging to the assessee were seized and in this regard it was contended that the page in the Annexure A/SVS/PO/2 cannot either be treated as account books or documents that belong to the assessee in which eve....
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.... undisclosed investment at Rs. 48.46 lakhs. It was also contended that the assessee never admitted voluntarily; when he was corned, and that too after losing it's case even before the first appellate proceedings, in the quantum proceedings, second appeal was not preferred and thus it cannot be equated to acceptance of the additional income to buy peace and hence the assessee cannot get immunity under Explanation 1 and 5A to section 271(1)(c) of the Act. It was also contended that undisclosed loans and advances is not a 'deemed income' since it is a regular income assessable to tax in the event of not proving the source of advancing the amounts and such conclusion was based on facts that were unearthed during the course of search. It was also submitted that it was a case of not only 'concealment of income' but also 'furnishing of inaccurate particulars of income' by filling an incorrect cash flow statement. He thus supported the stand of the A.O. as well as the Ld. CIT(A). 16. I have carefully considered the rival submissions and perused the record. Since the additional legal ground, with regard to non-specification of the accusation in the notice issued u/s 274 - which amounts to ....