2019 (3) TMI 575

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....r, 2010, declaring total income of Rs. 5,44,730/-. A search and seizure operation was conducted under section 132 of the Income Tax Act on 9th October, 2013 on the business premises of the assessee comprising Shubhkamna Buildtech Group of cases. Notice under section 153A was issued and the assessee, in response thereto, declared total income of Rs. 14,19,729/-. The assessing officer noted that in the return filed under section 153A, the assessee has shown income from short term capital gains to the tune of Rs. 8,75,000/- which was not shown in the original return of income under Section 139(1) by her. The assessing officer, however, noted that assessee purchased a property at Gurgaon for a total cost of Rs. 1,73,25,000/-. In assessment year....

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....271(1)(c) of the Income Tax Act, 1961 which is confirmed by the Learned CIT(A). 3. Learned Counsel for the Assessee submitted that prior to that the A.O. issued show cause notice before levy of the penalty under section 274 read with section 271 of the Income Tax Act, Dated 30th March, 2016, in which, the assessing officer has mentioned as under : "why penalty u/s.271(1)(c) of IT Act may not be imposed upon you. Why penalty u/s 271B of IT Act may not be imposed upon you." 3.1. He has submitted that prior to that assessing officer issued show cause notice on 25th February, 2015 for compliance on 14th March, 2016. However, by that time no assessment order under section 153A was passed. Therefore, the show cause notices issue....

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....sment order was passed under section 153A of the Income Tax Act, 1961. The assessing officer did not mention anything in the assessment order, if any, incriminating material was found against the assessee during the course of search, so as to make the impugned addition account of short term capital gain. The assessing officer on the basis of the return of income filed by the assessee under section 153A, found that assessee has declared short term capital gains in a sum of Rs. 8,75,000/-. The assessing officer, on further enquiry found that there is a difference in the purchase cost and the sale price as per circle rate, therefore, Section 50C was applied against the assessee. The assessing officer, however, accepted the return of income. It....

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....153A of the Income Tax Act, 1961. Learned Counsel for Assessee referred to the show cause notice issued before levy of the penalty Dated 30th March, 2016 i.e., on the same day on which assessment order have been passed. The said notice is reproduced above, in which, the assessing officer has not mentioned as to under which limb of Section 271(1)(c) of the Income Tax Act, 1961, whether for concealment of income or filing inaccurate particulars of income, such notice have been issued. Further, the assessing officer, in the assessment order has initiated penalty proceedings under both the limbs of Section 271(1)(c). The assessing officer in the penalty order has also mentioned that he has issued show cause notice dated 25th February, 2015 for ....