TaxTMI 
TaxTMI 
2026 (1) TMI 1258
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....iginal return of income on 30.10.2017 declaring total income of Rs. 1,61,91,500/- under normal provisions and book profit of Rs. 89,24,642/- under section 115JB. Subsequently, a revised return was filed on 26.02.2018 declaring total income of Rs. 1,62,71,890/- under normal provisions, while the book profit under section 115JB remained unchanged. The return was processed under section 143(1) of the Act. 3. Prior to filing of the return, a survey action under section 133A of the Act was conducted at the business premises of the assessee on 22.09.2016. During the course of the survey, the assessee declared cash receipts of Rs. 1,56,00,000/-, which were subsequently offered to tax in the return of income for the year under consideration. 4. The case was selected for scrutiny under CASS and notice under section 143(2) dated 12.09.2018 was issued. The assessment was completed by the Assessing Officer, Assistant Commissioner of Income Tax, Circle 10(1)(2), Mumbai, vide order dated 24.12.2019 passed under section 143(3) of the Act. While completing the assessment, the Assessing Officer accepted the returned income as assessed income and computed the total income at Rs. 1,62,71,890/-.....
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....ants had willfully and knowingly under-reported their income to the tune of Rs. 1,56,00,000/- which is liable to pay penalty under Section 270A of the Act. 2. On the Facts and Circumstances of the case and in law, ld. lower officers have erred in invoking the provisions of S. 270A(9)(a), on the allegation that in appellants' case there is misrepresentation or suppression of facts and appellants had supressed cash receipt amounting to Rs. 1,56,00,000/- which was subsequently declared after survey action took place and further that had survey not taken place in this case, appellants would not have declared the said amount. 3. On the Facts and Circumstances of the case and in law, ld. lower officers have erred in holding that appellants' income was assessed for the first time and thereby erred in computing the penalty as per the provisions of section 270A(10) of the Act. 4. On the Facts and Circumstances of the case and in law, ld. Lower officers have erred in levying penalty of Rs. 1,03,15,656/- as per the provisions of section 270A(8) of the Act. 5. Appellants pray for a leave to add, alter, modify, and withdraw the aforesaid Grounds of Appeal." ....
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....dditional income. 14. We have heard the rival submissions, perused the material available on record, and carefully considered the orders of the lower authorities. The undisputed facts emerging from the record are that a survey under section 133A of the Act was conducted on 22.09.2016, during which the assessee declared cash receipts of Rs. 1,56,00,000/-. The said amount was thereafter offered to tax in the return of income filed for A.Y. 2017-18, and the assessment was completed by the Assessing Officer under section 143(3) by accepting the returned income without any addition. It is also an admitted position that the income assessed is the same as the income returned, and there is no difference between the income processed under section 143(1) and the income assessed under section 143(3). The penalty proceedings under section 270A were initiated solely on the premise that the income of Rs. 1,56,00,000/- was declared as a consequence of the survey and that, according to the Assessing Officer, the assessee would not have declared the said income but for the survey action. 15. At this stage, it is relevant to note that the Assessing Officer, while initiating penalty proceedings....
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....e ambit of misreporting under section 270A(9). The Hon'ble High Court has observed as under: "4. Reading the order of the Tribunal would indicate that the Tribunal while confirming the order of the CIT(A)found that the conditions specified in Section 270A of the Act could not be invoked and so also regarding levy of penalty. The Tribunal noticed that the case is not covered under the provisions of section 270A(2)(a) of the Act for the reason that the income assessed and the income processed u/s. 143(1)(a) are same or in other words, income assessed was not greater than the income determined in return processed u/s. 143(1)(a) of the Act. As per provisions of section 270A(3)(i)(a) of the Act as there was no difference between the amount of income assessed and amount of income determined u/s. 143(1)(a) of the Act, there was no case of underreporting of income as per provisions of section 270A(2) and (3) of the Act. 4.1 With regard to misreporting of income as per provisions of section 270A(9), the Tribunal observed that the case of the assessee does not fall in any of the clauses specified at (a to (f). Neither any misrepresentation of suppression of facts has occurr....