2016 (4) TMI 1327

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....year under consideration, the assessee filed his return of income on 25th February 2009, declaring nil income. As stated by the Assessing Officer, a survey under section 133A of the Act was carried out in assessee's case and his associates on 12th September 2008, wherein it was found that the assessee had not filed his return of income for the impugned assessment year. It was further found that during the relevant previous year, the assessee had sold his residential house along with the garage for a consideration of ` 2,25,00,000, whereas he has not offered any tax on such transaction. It was further noticed, assessee was also receiving rental income from a property jointly held at Bangalore. On the basis of information gathered during the ....

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....ebruary 2009 and offered the income and paid the tax due. Relying upon certain judicial precedents, it was contended on behalf of the assessee that penalty proceedings should be dropped. The Assessing Officer, however, was not convinced with the explanation of the assessee. He was of the view that only because of survey action, the assessee came forward for filing of his return of income and paid the taxes. Otherwise, the income would have remained undisclosed and concealed. Accordingly, the Assessing Officer proceeded to impose penalty of ` 22,32,551 under section 271(1)(c). Being aggrieved of the penalty order, assessee preferred appeal before the learned Commissioner (Appeals). 3. Before the first appellate authority, the assessee rep....

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....29.06.2011, that is much after 16.06.2011. It is also. seen that the above letter dtd. 16.06.2011, has been reproduced by the AO in the penalty order, including the second para, wherein the AR of the appellant has informed about the appellant's demise and a copy of death certificate enclosed by him However, the AO has not discussed this part of the submission and proceeded to levy penalty on a dead person. Once the fact of death of the appellant had come to the notice of the AO, it was his bounden duty to issue notice to the legal heir of the appellant. The fact that penalty order has been passed in the name of the deceased appellant and not the legal heir also shows that no notice had been issued on the legal heir. In this regard vario....