TaxTMI 
TaxTMI 
2019 (12) TMI 353
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....n of delay in filing the appeal, to which; the ld. DR as well as ld. Counsel have not raised any objection. Consequently, since the assessee as well as Revenue was prevented by sufficient cause, the delays in filing of both the appeals are condoned and the appeals are admitted for adjudication. 3. The assessee filed the appeal challenging the direction of the ld. CIT(A) to levy the penalty under section 271AAA of the Act in place of penalty levied under section 271(1)(c) of the Act on the undisclosed income of Rs..3,89,32,110/-. 4. Brief facts of the case are that the assessee is engaged in carrying on construction and real estate business. There was a search and seizure operation in the premises of the assessee on 10.01.2008. During the course of search, books of account and documents were found and seized. In response to the issue of notice under section 153A of the Act, the assessee filed return of income for the assessment year 2007-08 on 12.08.2009 admitting income of Rs..3,89,32,110/-. The assessment under section 153A r.w.s. 143(3) of the Act was completed by determining the total income at Rs..4,03,96,828/-. The Assessing Officer also initiated penalty proceedings und....
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....8 and seized books of account and other documents. Since the assessee has not filed its return of income, the Assessing Officer issued notice under section 153A if the Act on 29.09.2008 and duly served on the assessee requiring to furnish a return of income for the assessment year 2007-08. Accordingly, the assessee filed its return of income on 12.08.2009 admitting a total income of Rs..3,89,32,110/-. After considering the submissions of the assessee as well as seized materials/documents, the assessment under section 153A r.w.s. 143(3) of the Act was completed by determining the total income of the assessee at Rs..4,03,96,828/- after making various additions. Since the assessee has not preferred further appeal against the additions, the Assessing Officer initiated penalty under section 271(1)(c) of the Act and levied penalty on the assessed income of Rs..4,03,96,828/- at Rs..1,35,97,572/-. Against levy of penalty, the assessee preferred further appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A) has observed that the search and seizure operation under section 132 of the Act was carried out on 10.01.2008, which was after 01.06.2007. It was....
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....e Act on 10.01.2008. In view of the above, the previous year had ended before the date of search and the date of filing of return of income under section 139(1) of the Act had also been expired. Thus, the provisions of section 271AAA of the Act have no application in this case, and accordingly, the ground raised by the assessee to this extent is allowed. Similarly, the appeal of the Revenue also allowed. 8. The next ground raised in the appeal of the assessee relates to levy of penalty under section 271(1)(c) of the Act. Since the assessee has not preferred any appeal against the assessment order, the Assessing Officer initiated penalty proceedings under section 271(1)(c) of the Act on account of unaccounted cash payments and negative cash balance. 8.1 The assessee has claimed land development expenses to the tune of Rs..5,99,755/-, which was paid in cash. Since the assessee could not furnish cogent evidence and proper vouchers, after verification of the accounts, the Assessing Officer estimated and allowed 50% and balance 50% of the cash payment amounting to Rs..2,99,878/- was disallowed. Against the disallowance, the Assessing Officer initiated penalty proceedings under sec....
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....th the provisions of TDS in respect of the payments made to M/s. Bright Electricals of Rs..39, 390/- and Shri S. Rajendran of Rs..25,450/- totalling to Rs..64,840/- in connection with land development. The assessee had no explanation to offer, the Assessing Officer made disallowance under section 40(a)(ia) of the Act. During the course of penalty proceedings, the Assessing Officer observed that even while filing the return of income under section 153A of the Act, the assessee should have added back himself the statutory disallowances applicable as per law. By not doing so, the assessee has furnished inaccurate particulars of income with the intention to conceal his total income, thereby warranting levy of penalty under section 271(1)(c) of the Act. Thus, the Assessing Officer levied penalty. 8.6 We have heard the rival submissions. There was non-compliance of provisions of TDS in respect of land development expenses incurred by way of payments made to M/s. Bright Electricals of Rs..39,390/- and Shri S. Rajendran of Rs..25,450/- totalling to Rs..64,840/-, but not deducted TDS. Moreover, while filing return under section 153A of the Act, the assessee has failed to add the statu....