2019 (2) TMI 352

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....ed out in the case of the assessee on 12-01-2012. In the said survey, assessee offered Rs. 1.49 crore as additional income on account of unaccounted professional receipts. Assessee filed the return of income including the additional income offered during the survey. Assessee claimed certain expenses on account of Salary, Petrol & Vehicle expenses amounting to Rs. 4,14,396/-. However, the AO disallowed 15% of such expenses and thus disallowed Rs. 62,160/- on the same. Eventually, AO determined the income at Rs. 1,38,08,770/- and levied penalty of Rs. 31,06,000/- u/s.271(1)(c) of the Act on the ground that the assessee concealed the particulars of her income. 3. Aggrieved the order of AO, the assessee filed an appeal before the CIT(A). ....

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....33A of the Act held on 12-01-2012 and the date falls within the previous year. The additional income offered during survey action was incorporated in the books of account and filed the return of income within the due date specified under the Act. On such facts, the penalty u/s.271(1)(c) is not leviable since no income is found concealed as per the return of income so filed by the assessee. In this regard, he relied on the following decisions : 1. ACIT Vs. M/s. D.J. Builders and Developers - ITA No.1731/Mum/2012, dated 25-07-2014 2. CIT Vs. Reliance Petroproducts Pvt. Ltd. 3. Mak Data P. Ltd. Vs. CIT - Civil Appeal No.9772 of 2013, dated 30-10-2013 5. On the other hand, Ld. DR heavily relied on the order of the ....

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....e case of Shri Muninaga Reddy Vs. ACIT in ITA No.1488/Bang/2012, decided on 14-08-2013. Relevant paras from the said decision are extracted below : "10. There can be no concealment or non-disclosure, as the assessee had made a complete disclosure in the IT return and offered the surrendered amount for the purposes of tax and therefore no penalty under s. 271(1)(c) could be levied. The words 'in the course of any proceedings under this Act' in Sec. 271 (1)(c) of the Act are prefaced by the satisfaction of the AO or the CIT(A). When a survey is conducted by a survey team, the question of satisfaction of AO or the CIT(A) or the CIT does not arise. One has to keep in mind that it is the AO who initiates penalty proceedings and directs ....