2009 (7) TMI 55

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....r, on the facts and circumstances of the case, the Tribunal was justified in reversing the well versed and speaking orders of the first appellate authority in deleting the penalty so levied by the AO u/s 271(1)(c) of the Income Tax Act, 1961?" (ii) "Whether, on the facts and circumstances of the case, the Tribunal was justified in reversing the well versed and speaking orders of the first appellate authority by holding that the revised return was filed after detection of concealed income which is against the facts and established principles of law that surrender/admission by filling revised return will not lead to concealment wherein the surrender has been accepted as such without making any further enquiries?" (iii) "Whether, on the ....

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....w taken by the CIT(A) and maintained the order of penalty. It was observed:- "We have heard both the parties and perused the material placed on record. The question of concealment of income or furnishing of inaccurate particulars of income for the purpose of section 271(1)(C) of the Income Tax Act, 1961 is to be determined with reference to the original return. Even if the income is surrendered in the revised return, the assessee still have to explain why the income was not shown and why inaccurate particulars of income were furnished in the original return. In case of bonafide error or in case of technical or venial breach of statutory provisions, the assessee might not be held guilty of default u/s 271(1)(c) of the Act, where the asses....

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....inion, the letter filed by the assessee is of no consequence and that surrender was made on detection of the bank accounts by the department and it is not a voluntary disclosure.  Only because the assessee filed a letter stating that the assessee offered additional income appearing in the bank voluntary surrender. The assessee was forced to surrender the income and the letter given by the assessee that no penalty may be initiated was not acceptable to the department and the AO has given a letter to the assessee that he would not consider that portion of the letter." ........ "7.1 But in the present case, the assessee has not disclosed to impugned bank accounts to the department.  These accounts were disclosed by the assessee in....

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.... Chawala Vs. CIT reported in 203 CTR 209, the Hon'ble Punjab & Haryana High Court has held that the assessee has filed the revised return surrendering the additional income only on coming to know about the detection of concealment by the department and that it is not a case of bona fide voluntary disclosure, penalty u/s 271(1)(c) is leviable.  Hence, in our opinion, it is not possible to hold that in every case mere surrender of income will foreclose any action of concealment of income. The penalty is levied on the basis of the relevant material and revised return was filed on coming to know about the detection of the concealment and the assessee cannot escape penalty merely on the ground that he has surrendered the impugned amount." ....