2019 (3) TMI 218

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....2009-10. 2. The substantive grounds of appeal raised by the assessee reads as under:- "1. The Ld. Commissioner of Income-Tax (Appeal) (CIT(A)) erred in fact and in law in confirming the penalty of Rs. 24,08,800/- under s. 271(1)(c) without appreciating the facts that declaration in search was made without incrementally material and it was assessed without any adjustment in the return of income. 2. The CIT(A) erred in facts and in law is not considering the additional ground of the appellant and denied the relief for the incorrect amount worked out by the AO." 3. Briefly stated, a search under s. 132 of the Income Tax Act was conducted on 09/04/2010 in the premises of R. K. Construction Group of cases including the ca....

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.... The tax and applicable interest was also paid thereon. It was further submitted that during the course of search, a statement was recorded under s. 132(4) of the Act in which the assessee has accepted the expense towards sub-contract amounting to Rs. 61,94,647/- as bogus. However, no incriminating material was found by the department to support the alleged bogus transaction except the oral evidence recorded under s. 132(4) of the Act. The AO has also accepted the income disclosed by the assessee in the return filed under s. 153A of the Act without any addition thereto. It was thus contended that when the return filed under s. 153A is accepted by the AO without any additions/variations, no concealment of income per se can be inferred wit....

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....igh Court was dismissed by the Hon'ble High Court as reported in 373 ITR 681 (C). 7. We have carefully considered the rival submission. In terms of the plea raised, the central question that emerges for determination is whether penalty under s. 271(1)(c) can be imposed in the facts and circumstances of the case narrated in preceding paras. At the outset, we notice peculiar observations of the AO that the alleged undisclosed income of Rs. 61,94,647/- relates to the specified year which has been assigned a statutory meaning under s. 271AAA of the Act. The undisclosed income according to the statement of the assessee under s. 132(4) relates to assessment. year 2008-09 which appears to have been assessed in assessment year 2009-10 as per the....