2018 (8) TMI 1918

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..../- by ignoring the fact and circumstances of the case and the facts mentioned by the AO in the penalty order ; (ii) the appellant craves liberty to raise additional ground and to modify/amend the ground of appeal at the time of hearing." 2. The assessee is engaged in the business of contract. A survey under section 133A of the I.T. Act was conducted on 9th February, 2011. During the survey proceedings, the assessee surrendered his undisclosed income of Rs. 1,51,50,000/-. However, the assessee did not declare the surrendered income in the return of income filed on 30th March, 2012. During the assessment proceedings, the AO issued show cause notice to the assessee as to why the addition of Rs. 1,51,50,000/- should not be made to t....

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....mission of additional income from computation and subsequently revision through the computation in the course of assessment proceedings show the intention of the assessee to be bonafide. Accordingly, the ld. CIT (A) deleted the penalty levied by the AO. 3. Before us, the ld. D/R has submitted that it is not a voluntary surrender or declaration of income but it was detected during the survey under section 133A by the AO. Despite the assessee surrendered the said income of Rs. 1,51,50,000/-, the assessee did not declare the said income in the return of income and only when the AO issued a show cause notice, the assessee filed a revised computation and agreed to the additional income. Thus the ld. D/R has submitted that it is a clear case o....

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....inly fall in the category of furnishing incorrect particulars of income in the return of income as the assessee had already declared and surrendered the said income during the course of survey proceedings under section 133A. However, in the case in hand the assessee has paid the due tax on the said income prior to the filing of the return of income and further this amount was duly reflected in the books of account of the assessee. Once the assessee has considered the additional income surrendered during the survey in the books of accounts and also paid the tax on the same, then mere non inclusion of the said income in the return of income due to inadvertence and bonafide mistake would not lead to the conclusion that the assessee has conceal....

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....a fide belief must be substantiated with some documentary evidence. The claim of bona fide belief can also be substantiated by circumstantial evidence when possibility of documentary evidence cannot be expected. Since the entire process in this case has involved voluntary surrender, there was no question of contest before the first appellate authority which has been made a ground by the A.O. while imposing the penalty. The huge amount of taxes paid which were in department's coffers show that the intent of the assessee was not malafide or else he could have not left it for 2 years in the government account and instead would himself have earned substantial interest on the same. Thus, in the present case it is clear that the....