TaxTMI 
TaxTMI 
2018 (12) TMI 192
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.... the additional income during the course of assessment proceedings also claimed the TDS voluntarily, which was remained to be claimed. c) Offering of the additional income and claim of TDS which was remained to be disclosed in the return of income is a voluntary and bonafide offer and it is full and true disclosure of all the facts. d) The learned A.O has not pointed out any mistake either on legal front as well as on merits in this revised statement. 3. The issue raised in the present appeal is against levy of penalty under section 271(1)(c) of the Act at Rs. 4,39,162/-. 4. Briefly, in the facts of the case, the assessee for the year under consideration had furnished return of income declaring total income of Rs. 4,52,640/-. The case of assessee was picked up for scrutiny. The Assessing Officer noted that there was difference of TDS as per 26AS statement and the TDS declared in the return of income. In order to verify the same, the Assessing Officer called for the details. On perusal of 26AS statement, the total TDS was Rs. 6,43,191/- and as per return of income filed by assessee, the TDS was shown at Rs. 35,020/-. The assessee was asked to explain the same. Further, on peru....
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.... Officer in penalty order passed under section 271(1)(c) of the Act noted that three additions were made in the hands of assessee totaling Rs. 15,52,810/-. In response to notice issued under section 271(1)(c) of the Act, the assessee did not file any explanation. Another notice was given to the assessee and the assessee furnished written explanation, which is reproduced under para 5 of penalty order. In the said reply, the assessee pointed out that he had filed income tax return declaring total income of Rs. 4,52,637/-. Subsequently, the assessment was made and addition of Rs. 15,52,810/- was made in the hands of assessee, on which total tax worked out to Rs. 4,39,162/-, whereas TDS deducted was Rs. 6,43,191/- and hence the assessee had claimed refund of Rs. 1,73,890/-. He admitted that there was concealment of income during the said assessment year, however, there was no default in paying tax on the said concealed income and hence, there was no evasion of tax. He pointed out that there was no tax liability, penalty proceedings initiated may be dropped. The Assessing Officer noted that the assessee had only come forward and accepted his mistake in not offering the income when the A....
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....by the assessee. The learned Authorized Representative for the assessee has filed written note and has reiterated his stand that omission or non-disclosure of income from different heads was only due to the mistake or inadvertency and was not with a view to evade tax and has given various explanations. In this regard, he pleaded that penalty proceedings were distinct from assessment proceedings and finding recorded in assessment proceedings would not operate as res judicata in penalty proceedings. He further placed reliance on the following decisions:- i) DCIT Vs. Smt. Prabhavathi Dharam Singh (2009) 34 SOT 125 (Bangalore) ii) Anandamoy Bhattacharjee Vs. ITO (2009) 105 ITD 365 (Calcutta) iii) ITO Vs. Smt. Madhuri Satish Misal in ITA No.2375/PN/2012 along with CO No.103/PN/2013, relating to assessment year 2008-09, order dated 25.08.2014 iv) CIT Vs. Smt. Madhuri Satish Misal in Income Tax Appeal No.492 of 2015, judgment dated 19.09.2017 7. The learned Authorized Representative for the assessee has also distinguished the reliance placed upon by the CIT(A) on different decisions. 8. The learned Departmental Representative for the Revenue placing reliance on the order of CIT(....
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.... during the year under consideration, he failed to declare business income. 11. Now, let us look at Form No.26AS for assessment year 2011-12. In Form No.26AS, there are details of tax deducted at source under section 192 of the Act i.e. salary receipts from Classic Publicity Pvt. Ltd. to the tune of Rs. 5 lakhs and then there is tax deducted at source of Axis Bank on account of interest on several deposits under section 194A of the Act and then there are various deductions under section 194(3) of the Act and Form No.26AS is placed at pages 27 to 44 of Paper Book, wherein various parties have deducted tax at source under section 194C of the Act. If we look at the entries it is clear that he is not carrying on the business for one or two persons, the receipts are from several persons and he is receiving commission on different dates from different parties. While filing the return of income for assessment year 2011-12, in verification, he solemnly declared that the income is declared by him to his best of knowledge and belief and he also says that information given in the return is correct and complete income in the return of income filed by him. However, a person who is carrying on ....
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....idered as his concealed income. He has prepared Balance Sheet and Profit and Loss Account and offered income of Rs. 14,55,987/-. This exercise has been carried out only once the assessment proceedings have been initiated. Further, on the income from short term capital gain, there is no question of any TDS being deducted, may be on interest income, some TDS has been deducted but that does not absolve the assessee from the levy of penalty for concealment under section 271(1)(c) of the Act. The plea of no tax due after including the concealed income cannot absolve the assessee from its obligation to declare total income earned in the year and such non-declaration makes the assessee liable to levy of penalty for concealment. 13. The Hon'ble Supreme Court in the case of MAK Data (P.) Ltd. Vs. CIT (supra) has held that even voluntary disclosure does not release the assessee from mis-chief of penal proceedings under section 271(1)(c) of the Act. It has further been held that the Assessing Officer shall not be carried away by the plea of assessee like 'voluntary disclosure', 'buy peace', 'avoid litigation', 'amicable settlement', etc. to explain away its conduct. 14. Applying the sai....