AI Drafter 
TaxTMI 
TaxTMI 
2019 (10) TMI 79
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....convenience, a composite order is being passed. 3. The assessee has raised common grounds in all these appeals, therefore, grounds raised by the assessee in the appeal for the A.Y. 2007-08 are reproduced as under: "1. On the facts and in the circumstances of the case and in law the ld. CIT(A) erred in rejecting the legal contention of the assessee that the initiation and imposing of penalty proceedings is wrong, bad in law, invalid and void ab initio as the ld A.O. initiated/imposed the penalty u/s 271(1)(c) of Income Tax Act, 1961 without specifying the limb of reasons in the penalty notice to impose the penalty i.e. whether it is for concealment of particulars of income or for furnishing of inaccurate particulars of income. ....
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....penalty U/s 271(1)(c) of the Act but could not succeed. 3. Before the Tribunal, the ld AR of the assessee has submitted that there was no incriminating material seized or found during the course of search and seizure action disclosing any income on account of interest on FDR. However, the assessee suo moto declared interest income on FDR in the return of income filed U/s 153A which was accepted by the A.O., therefore, when the assessee has declared income suo moto and voluntarily and no addition was made by the A.O. while completing the assessment U/s 143(3) r.w.s. 153A of the Act then the penalty U/s 271(1)(c) of the Act is not justified. In support of his contention, he has relied upon the various decisions. The ld AR has further conte....
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....laring income from house property and income from other sources. Though, there was a search in case of Moti Sons group on 31/10/2012, however, there was no incriminating material either found or seized disclosing any undisclosed income of the assessee as a result of search and seizure action. The assessee was covered by the search carried out U/s 132(1) of the Act and consequently the A.O. was bound to issue notice U/s 153A of the Act for all the six assessment years immediately preceding assessment year relevant to the previous year in which search is conducted. In response to the notice U/s 153A, the assessee filed return and declared additional income on account of interest on FDR. The details of the income declared in the return filed U....
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....deemed to have concealed the particulars of income or furnished inaccurate particulars of such income. Thus, Explanation 5A to Section 271(1)(c) provides a deeming fiction for treating the assessee to have concealed the particulars of his income or furnishing inaccurate particulars of such income irrespective of the fact that the assessee has declared such additional income in the return of income furnished after the date of search. However, it is also relevant to note that in case in hand, there was no incriminating material found during the course of search and seizure representing any undisclosed income and specifically any income on account of interest on FDR. The A.O. has not made any reference either in the assessment order or in t....
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....by the assessee on maturity of the FDR would be a bonafide belief and therefore, the income on account of interest on the FDR offered the assessee to tax would not lead to the conclusion that the assessee has furnished inaccurate particulars of income or concealed the particulars of income. The case of the assessee falls in the ambit of reasonable explanation/cause for failure of not declaring the said income as provided U/s 273B of the Act. Hence, in the facts and circumstances of the case when there was no incriminating material found or seized during the course of search disclosing any undisclosed income on account of interest on FDR then the suo moto declaration of such income in the return of income filed U/s 153A of the Act would not ....