2018 (1) TMI 1327

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....ble to be quashed. 3. That the appellant craves for any other grounds which may be taken at the time of bearing of appeal. 2. The main grievance of the assessee is against the imposition and confirmation of penalty of Rs. 70,768/- levied under section 271(1)(c) of the Act. 3. The brief facts in this case are that return was filed by the assessee on 12/3/2013 declaring an income of Rs. 1,98,040/-. Later on, proceedings under section 147 of the Act was initiated by issuing notice under section 148 of the Act to examine the capital gain from sale of immoveable property. The income from capital gain was not shown by the assessee, as he was unaware of the tax on sale of property. However, during the course of assessment proceedings, assessee ....

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....about the tax to be paid, the very day when the assessment order was passed he paid taxes as is evidences on record. The assessee further submitted that following propositions are emerged from various case laws relied upon by him:- (a) Where the assessee surrenders his full income though at a later stage, there was no question of any concealment on his part and no penalty under section 271(1)(c) of the Act was leviable and that an omission from the return of income did not amount to concealment. (b) Surrender of the amount by the assessee after receipt of questionnaire could not lead to an inference that it was not voluntary in the absence of any material on record to suggest that it was bogus or untrue. (c) There cannot be any penalty ....

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....s been committed by him and, therefore, he himself attended the hearing before the Assessing Officer and on coming to know about the amount of tax payable, has immediately paid tax on the same date. He has not even challenged the assessment order and has accepted the assessment as passed by the Assessing Officer and paid due tax. Therefore, there is no loss to the Revenue. The Assessing Officer as well as the ld. CIT(A) were of the opinion that if the notice under section 148 of the Act was not issued, then assessee would have got away with the tax evasion and, therefore, penalty was levied. The spirit of section 271(1)(c) of the Act says "concealment of income or furnishing of inaccurate particulars of income". Now the judicial pronouncem....