AI Drafter 
TaxTMI 
TaxTMI 
2019 (7) TMI 1489
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....rs 2000-01, 2001-02 and 2002-03. 2. Brief facts are, the assessee is an individual and resident of India. As stated, he derives income from rent and investments. On the basis of information received from the office of the DDIT (Inv.), Unit-IX(2), Mumbai, dated 21st January 2013 stating that the assessee is holding a bank account with erstwhile Republic National Bank of New York (Suisse) S.A., Geneva, now known as Hong Kong Shanghai Bank Corporation (HSBC, Geneva), re-opened the assessments for the impugned assessment years under section 147 of the Income Tax Act, 1961 (for short "the Act"). In response to the notices issued under section 148 of the Act, the assessee filed its return of income for the aforesaid assessment years declaring ....
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....t imposition of penalty, however, the Assessing Officer rejecting the explanation of the assessee imposed penalty u/s 271(1)(c) of the Act in all the assessment years as detailed below:- A.Y. 2000-01 Rs. 38,039 A.Y. 2001-02 Rs. 51,415 A.Y. 2002-03 Rs. 9,403 4. Though, the assessee challenged penalty imposed under section 271(1)(c) of the Act by filing appeals before learned Commissioner (Appeals), however, learned Commissioner (Appeals) sustained the penalty imposed by the Assessing Officer. 5. The learned Authorised Representative submitted, there is no dispute that the deposits made in the foreign bank account were from explained source as the Departmental Authorities have not raised any issue with regard to the am....
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....ax. He submitted, subsequently clause (c) was introduced to section 149(1) of the Act by Finance Act, 2012, w.e.f. 1st July 2012, empowering the Assessing Officer to issue notice under section 148 of the Act within a period of 16 years to tax the income arising outside India. Thus, he submitted, when the Department issued notice under section 148 of the Act in pursuance to the aforesaid provision, the assessee got an opportunity to offer the interest income to tax. The learned Authorised Representative submitted, in these circumstances, assessee cannot be accused of concealing income or furnishing of inaccurate particulars of income. More so, when the quantum of interest income earned by the assessee is not much and the assessee has volunta....
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..... We have considered rival submissions and perused the material on record. From the facts on record it is clear that the assessee has a account in HSBC, Geneva. It is also evident, the assessee was regularly earning interest on the deposits standing in the said foreign bank account. However, the interest income earned on such bank account was not offered to tax by the assessee. It is also evident, in pursuance to the notices issue under section 148 of the Act, the assessee filed revised return of income for the aforesaid assessment years and offered interest income to tax. The revised returns of income were also more or less accepted by the Assessing Officer, except the fact that, he further reduced the income declared by the assessee. One ....
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....of section 149(1)(c) of the Act by Finance Act, 2012, w.e.f. 1st July 2012. Thus, with introduction of the aforesaid provision the Assessing Officer became empowered to re-open the assessment for the impugned assessment years. Keeping in view the aforesaid facts, the assessee's explanation with regard to its inability to deposit the tax for the impugned assessment years earlier needs to be examined. Moreover, the assessee has filed additional ground challenging the validity of the penalty proceedings. Considering the fact that the issue raised in the additional ground is a purely legal issue going to the root of the matter, we are inclined to admit the additional ground in all these appeals. However, since, the issue raised in the additiona....