2021 (6) TMI 255

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....ing the penalty levied u/s.271(1)(c) of the I.T. Act of Rs. 76,87,169/- without appreciating the fact that the assessee disclosed unaccounted income of Rs. 2.50 Crores during the survey action u/s.133A of the Act, conducted on the assessee. 2. On the facts and circumstances of the case, the Ld. CIT(A) failed to appreciate the fact that the disclosed unaccounted income was never part of books of accounts of the assessee and had there been no survey action on the assessee, the income of Rs. 2.50 crores would have escaped assessment. Therefore, the income declared in the return filed after the date of survey, cannot be considered as "voluntary‟. 3. On the facts and circumstances of the case, the Ld. CIT(A) erred in dele....

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....ere been no survey action, the assessee would not have disclosed his admitted income and therefore, initiated penalty proceeding u/s.271(1)(c) of the Act for concealment of income. 3. During the penalty proceedings, in response to the notice issued u/s.271(1)(c) r.w.s. 274 of the Act, the assessee submitted before the Assessing Officer that it had offered income to buy peace of mind and since the admitted undisclosed income was disclosed in the return of income filed, penalty u/s. 271(1)(c) of the Act should not be levied. The argument of the assessee did not find favour with the Assessing Officer and penalty was levied u/s.271(1)(c) of the Act in respect of the unaccounted income of Rs. 2.50 crores at the rate of 100% which worked out a....

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....mises, conjectures and possibilities. Section 271(1)(c) of the Act has to be construed strictly. Unless it is found that there is actually a concealment or non-disclosure of the particulars of income, penalty cannot be imposed. There is no such concealment or non-disclosure as the assessee had made a complete disclosure in the income tax return and offered the surrendered amount for the purposes of tax." 5. That further the Hon'ble Supreme Court in the case of CIT Vs. Reliance Petroproducts (P) Ltd., (2010) 322 ITR 158 (SC), the very basis for imposing penalty u/s.271(1)(c) of the Act was analysed and the principle emerged was that the alleged concealment of income or furnishing of inaccurate particulars of income by the assessee has ....