AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 680
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....Act"). Against the assessment order, assessee appealed before the Ld. CIT(A) and during the appellate proceedings the assessee was issued a notice of enhancement u/s 251(1) r.w.s. 251(2) of the Act on 11.02.2013 on the following issues. i) Sale of property to M/s Shradha Developers in FY 2008-09 for Rs. 1.90 crores but the capital gains had not been shown ill the return of income. ii) In the bank account No. 101 in Surat Peoples Co-operattve Bank Ltd., Katargam, Surat the total credit entries of Rs. 2.71 crores was not reflected in the return of income. 2.1 The appeal of the assessee was decided vide order dated 26.03.2014 wherein the sale of the property to M/s Shradha Developers and the credit entries including cash deposits in the Account no. 101 in Surat People's Co. Op Bank Ltd., Katargam, Surat was found to be undisclosed. Accordingly, the income of the assessee was enhanced u/s. 251(1) r.w.s. 251(2) of the Act and addition of Rs. 2,28,90,500/- (Rs. 1,90,00,000 on account of capital gains + Rs. 38,90,500 on account of cash deposits) was made and penalty proceedings u/s. 271(1) (c) of the Act was issued on 26.3.2014 in the appellate proceedings, but no compliance w....
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.....06.2015 decided in ITA No. 3348/Ahd/2010 (AY 2007-08) & ITA No. 1170/Ahd/2014 (AY 2007-08) in the case of M/s Ruchi Developers vs. ITO. 4. On the contrary, Ld. CIT(DR) has relied upon the penalty order of the Ld. CIT(A) and also relied upon the case laws discussed therein. He submitted that it is evident that the assessee had deliberately and intentionally not disclosed the true and correct income with the intention to evade tax to the extent of Rs. 2,28,90,500/- on account of undisclosed sale of property and bank transactions and the assessee himself has not filed any return of income and has admitted the transactions to be undisclosed, therefore, the Ld. CIT(A) has rightly levied the penalty u/s. 271(1)(c) of the Act for concealment of income, which does not need any interference and accordingly, the appeal of the assessee may be dismissed. Even otherwise, he submitted that that the Tribunal in quantum appeal vide its order dated 06.6.2019 in assessee's own case for the assessment year 2009-10 in ITA No. 1615/Ahd/2014 has upheld the action of the Ld. CIT(A) for enhancement of income of Rs. 38,90,500/-. 5. We have heard both the parties and perused the records, especially the....
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....ilaben, was considered as from undisclosed sources and was added to the income of the assessee. In addition to this amount there is a cash deposit of Rs. 24,05,500/- for which the assessee has given no explanation. Since no explanation regarding the cash deposit of Rs. 38,90,500/- disclosed income. The assessee had made a submission during the appellate proceedings regarding the addition made on enhancement u/s 251(1) of the Act for the benefit of telescoping of income/outgoings. The benefit of the telescoping was not given to the assessee as the assessee had not, filed any return of income. No balance sheet had been filed by the assessee to show the assets and liabilities. The income from the various sources earned by the assessee i.e., income from contract, interest income, income from commission and brokerage, Income from sale of land etc. had not been disclosed by the assessee. The sale of the property to M/s.Shradha Developers and transactions in the bank account had not been disclosed by the assessee. He is not maintaining any books of accounts which are supported by proper documents/evidences. The undisclosed incomes from the various sources have been detected by the departm....
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....ion. Such fear must be traceable to imminent or proximate exposure of the assessee to penal action, but for the filing of the return. 5.1 We note that the Hon'ble Allahabad High Court in the case of Bhairav Lal Verma v. Union of (India [1998] 230 ITR 855 while interpreting the word 'voluntarily' given in section 273(A) of the Act held that voluntarily means out of free will without any compulsion, When the assessee concealed the incriminating material with regard to income so disclosed cannot be held to be voluntarily. The Court held "The position thus settled is that the word "voluntarily" in section 273A of the Act means out of free will without any compulsion, Disclosure of concealed income after the Department has seized the incriminating material with regard to the income so disclosed cannot be voluntary disclosure, because It was made under the constraint of exposure to adverse action by the Department, But it cannot be held as a principle of law that the disclosure of Income made after the search/raid cannot be voluntary. It is a question which has to be decided by the Department in each case on the basis of the material on the record If Of') record there is in....
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....se laws are as following: > PC Joseph & Bros (Kerala) 240 ITR 818 > Rakesh Suri (All) 331 ITR 458 > Sushma Devi Agarwal (ITAT-Kol-TM) 67 DTR 430 5.2 Also Where the omission is deliberate, he cannot get rid of merely by filing a revised return. The revised return being filed only after the Department got information which was confronted to the assessee, penalty is attracted. Similar view has been upheld by several courts in the following judgments:- > Dayabhai Girdharbai Vs CIT (80m) 32 ITR 677 > CIT Vs Haji P. Mohammed (Ker) 132 ITR 623 > Mahavir Metal Works Vs CIT (P&H) ~ > Badri Prasad Om Prakash Vs CIT (Raj) 163 ITR 440 > S.R. Arulprakasam Vs Prema Malini Vasan, ITO (Mad) 163 ITR 487 > F.C. Agarwal Vs CIT (Gauhati) 102 ITR 408 > CIT Vs J.K.A. Subramania Chettiar (Mad) 110 ITR 602 > Ravi & Co. Vs ACIT (Mad) 271 ITR 286 5.3 It is an obligatory duty cast upon income derived from any source under various heads and indicate the income under each head, which is chargeable to income-tax, after making the permissible deductions. Disclosure of income would be disclosure of particulars of income, which a person is duty bound to disclose in fulfillment ....
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....is income' or 'furnished inaccurate particulars of such income'. Therefore, both in cases of concealment and inaccuracy, the phrase 'particulars income' is used. It will be noted that as regards concealment, the expression in clause (c) is 'has concealed the particulars of his income' and not 'has concealed this income'. It is obvious that the penal provisions would operate when there is a failure of duty to disclose fully and truly particulars of income, imposed under the Act and the Rules there under. The duty is enjoined upon a person to make a correct and complete disclosure of his income and it is only when he fails in his duty by not disclosing his income or part thereof, he conceals the particulars of his income. The duty is enjoined upon him to make a complete disclosure of his income as well as correct disclosure. Therefore, if the disclosure made of the particulars of income is incorrect, then also he commits breach of his duty. Such defaults entail the penal consequences contemplated by section 271(1)(c). The assessee was not forthcoming in the declaration of the true and correct income. The provisions of Sec. 271(1)(c) also includes deemed income. The position o....
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....n. The word 'conceal' is derived from Latin word 'concelare which implies 'to hide'. In webster's New International Dictionary, the word has been equated 'to hide or withdraw from observation; to cover or keep from side; to prevent discovery of; to withhold knowledge of. There may be cases where the facts may attract both the offences, and in some cases there may be overlapping of the two offences. The expression of the principle that mere rejection of the explanation is not sufficient to sustain penalty is not backed up by necessary enquiry as per rule of evidence, there is distinction between set of facts "not proved" and 'facts disproved' and 'facts proved'. Benefit of the principle that mere non-satisfactory nature of explanation furnished cannot amount to proof of falsity of explanation furnished can apply in case the fact-finding authority reaches to a stage where it can only that the fact alleged is "not proved" which would that except rejection of the explanation furnished by the assessee, there is no material to sustain in the plea of concealment. But, on the other hand, if the state of affairs reveals a stage where one can positively reach ....
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.... primarily concerns the case at hand, automatically comes into operation when, in respect of any facts material to the computation of total income of any person, there is failure to offer an explanation or an explanation is offered which is found to be false by the Assessing Officer or First appellate authority, or an explanation is offered which is not substantiated. In such a case, the amount added or disallowed in computing the total income is deemed to represent the income in respect of which particulars have been concealed. As per the provision of Explanation 1, the onus to establish that the explanation offered was bona fide and all facts relating to the same and material to the computation of his income have been disclosed by him will be on the person charged with concealment. The provision of Explanation 1 is concerned only with cases coming under clause (B) of the Explanation, Where the assessee offered an explanation which he was not able to substantiate. The explanation of the assessee for the purpose of avoidance of penalty must be an acceptable explanation; it should not be a fantastic or fanciful one. 5.6 The position on and after 1-4-1976 is clear that where, in re....