TaxTMI 
TaxTMI 
2022 (6) TMI 475
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....ed in the business premise of the assessee. During the course of survey proceedings and materials impounded, it transpired that the assessee had sold its immovable property to M/s. Lakshmi Machine Works Ltd. for a total consideration of Rs..8.52 crores. Based on the findings of the survey and the materials unearthed during the proceedings, notice under section 148 of the Act was issued since there was reason to believe that the income chargeable to tax had escaped assessment within the meaning of provisions of section 147 of the Act. In response to the notice issued by the Assessing Officer under section 148 of the Act on 20.01.2015, the assessee filed its return of income on 29.10.2015 admitting total income of Rs..91,42,410/- M/s. IRIS Engineering Industries Pvt. Ltd. Subsequently, notice under section 143(2) of the Act was issued on 12.11.2015 and in response thereto, the AR of the assessee appeared and submitted the details as called for. After considering the statement of oath recorded from Shri Arun Selvaraj, Managing Director of the assessee company, the Assessing Officer has noted that the assessee company had received the sale consideration of Rs..8.52 crores from M/s. LMW....
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....ould have been suicidal for the assessee company to think of concealing such a huge transaction with such a big corporate house who would have declared the purchases in totality as to the consideration paid. (e) Though the assessee company had not filed the return of income in time, before the survey, the company was voluntarily planning to approach the Income-tax Department and seed its guidance as to how to file the returns of income after the passage of due date and the time limits for doing so, the company had received the notice u/s. 148 which got the assessee one more opportunity to amend the mistake and file the return of income. (f) The company fully co-operated with the department in all manner and furnished all the required documents, statements, records and confirmations. In the process all details given by the company was accepted by the department and the return of income was accepted as such without any addition by the department and hence it is purely a technical error for non filing of return and the company has not as such concealed any income any manner." 2.2 After considering the submissions of the assessee and facts of the case, the Assessin....
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....filing the return u/s 139 duly disclosing the particulars of capital gains chargeable to tax for Asst. Year 2012-13. 6. Further, the assessee claims that the company was voluntarily planning to approach the income tax department and seek its guidance as to how to file the return of income after passage of the due date. The capital gain was disclosed only after the survey was conducted and the return of income was filed after the receipt of notice u/s 148. The assessee filed the returns on 29.10.2015 but the notice was issued on 20.01.2015 which is beyond the time limit prescribed u/s 148. The return was filed after issuing notices u/s 142(1) dated 05.06.2015 and 20.07.2015 which contradicts the statement of the assessee that the company has fully cooperated with the Department in all manner and furnished all the required documents and statements. 7. In this background, I am of the considered view that the explanation furnished against levy of concealment of penalty cannot be accepted as bonafide. The addition was riot on account of voluntary offer made by the appellant but only after the Assessing Officer finding it during the survey. In similar cases where assess....
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....el for the assessee has submitted that the penalty order passed by the Assessing Officer is not a valid penalty order for the reason that the assessment itself was held to be invalid for the reason that the order passed by the Assessing Officer to a non-existing company. Therefore, the penalty proceedings are liable to be quashed. 5. On the other hand, the ld. DR strongly supported the orders of authorities below. 6. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, the assessee filed its return of income on 29.10.2015 after survey was conducted and by issuing notice under section 148 of the Act dated 20.01.2015 and after issue of notice under section 142(1) of the Act dated 05.06.2015 and dated 20.07.2015. In the return of income, the assessee has disclosed the long term capital gains of Rs.. 98,92,494/- after claiming the exemption under section 54G (investment in land). The Assessing Officer allowed the exemption under section 54G of the Act by passing the assessment order under section 147 r.w.s. 143(3) of the Act dated 24.03.2016. Thereafter, the Assessing Officer initiated penalty proc....