TaxTMI 
TaxTMI 
TaxTMI 
2018 (2) TMI 1380
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....me. The AO completed scrutiny assessment, by assessing total of the two figures i.e. Rs. 2,09,18,060/-. He initiated penalty proceedings, on the footing that the assessee had concealed the income and filed inaccurate particulars when she, in fact, filed the return on 25.09.2009. The penalty order was subsequently made on 29.06.2012. The assessee appealed to the CIT (A) against imposition of penalty contending that she neither concealed particulars of income nor furnished inaccurate particulars and that all material disclosures were made during the assessment proceedings. The revised return merely reflected the voluntary disclosures made by her. 3. In the appellate proceedings, the assessee also urged that during survey, no documents or evidence was gathered by the Revenue Department, establishing that she did not, in fact, conceal any particulars of income. The disclosures were not related to any incriminating document or material recovered or gathered during the survey action. The assessee stated that she disclosed the amount to buy peace of mind and avoid further proceedings. The assessee relied upon the statement made by her in the course of the survey in this regard. 4. The C....
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....cumstances of this case. It was pointed out that prior to the survey (on 22.02.2010), the assessee had filed a return, which failed to disclose the true particulars. It was only during survey proceedings that she surrendered income to the extent of Rs. 2,00,00,000/- and revised the returns subsequently. The fact that she voluntarily revised the return, would not absolve the assessee from liability to penalty. Learned counsel submitted that the onus of proving that the returns were filed accurately, in the circumstances shifted to the assessee. Once it was shown that additional income was surrendered and a revised return was filed, it was up to the assessee to establish that, in fact, the omission was bona fide or that there was a cogent and reasonable explanation. In this respect, learned counsel relied upon the explanation inserted by the Finance Act, 1964 to Section 271(1)(c) and also cited the judgment reported as Additional Commissioner of Income Tax v. Jeevan Lal Shah 205 ITR 244. It was highlighted that the object of omitting the expression "deliberately" from the provision i.e. Section 271(1)(c) was to remove the requirement of a mental state and shifting the burden of proof....
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.... finding that the returns (subsequently revised in consonance with law) did not furnish material particulars or were inaccurate in material facts, penalty could not have been imposed. It was stated that for these reasons, the impugned order is reasonable and does not call for interference. 10. The above factual background shows that when originally filed, the assessee had not disclosed the income that she ultimately declared. On 22.02.2010, during the course of survey, she voluntarily surrendered Rs. 2,00,00,000/- and filed a revised return declaring that amount as additional income. She later filed a revised return. Based on it, the assessment was completed and accepted. The AO imposed and the CIT (A) affirmed penalty under Section 271 (1) (c) of the Act. The ITAT, professing to follow certain decisions of this court, held that there was no concealment of income or filing of inaccurate particulars. 11. In SAS Pharmaceuticals (supra) relied upon by the assessee and ITAT, in this case, it was observed as follows: "15. It necessarily follows that concealment of particulars of income or furnishing of inaccurate particular of income by the assessee has to be in the income tax return....
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....ng penalty. Rejecting the assessee's appeal, the Supreme Court observed as follows: "The AO, in our view, shall not be carried away by the plea of the assessee like "voluntary disclosure", "buy peace", "avoid litigation", "amicable settlement", etc. to explain away its conduct. The question is whether the assessee has offered any explanation for concealment of particulars of income or furnishing inaccurate particulars of income. Explanation to Section 271 (1) raises a presumption of concealment, when a difference is noticed by the AO, between reported and assessed income. The burden is then on the assessee to show otherwise, by cogent and reliable evidence. When the initial onus placed by the explanation, has been discharged by him, the onus shifts on the Revenue to show that the amount in question constituted the income and not otherwise. 8. Assessee has only stated that he had surrendered the additional sum of Rs. 40,74,000/- with a view to avoid litigation, buy peace and to channelize the energy and resources towards productive work and to make amicable settlement with the income tax department. Statute does not recognize those types of defences under the explanation 1 to ....