2025 (2) TMI 1944

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.... u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as "Act"] dated 22.12.2021 as passed by the National Faceless Assessment Centre, Delhi for the Assessment Year [A.Y.] 2016-17. 2. The assessee has raised the following grounds of appeal: "a. Under The facts and circumstances of the case, the learned CIT Appeals erred in confirming the penalty of Rs 23,14,410/- u/s 271(1)(c) of the IT Act. b. The learned CIT Appeals failed to appreciate that the penalty u/s 271(1)(c) of the IT Act is not leviable, where the assessee voluntarilty withdrew the claim of weighted deduction u/s 35(1)(ii) of the Act and offered to tax the claim in the return of income filed pursuant to notice u/s 148 of the Act as the explanat....

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....he entire amount of weighted deduction of Rs. 70,00,000/- claimed in the original return of income pertaining to the donation of Rs. 40,00,000/-. The Assessing Officer at the time of assessment, reassessed the income of Rs. 3,07,32,590/- as declared in the ITR. He also initiated penalty proceedings u/s 271(1)(c) of the Act for furnishing in accurate particulars of income in respect of deduction u/s 35(1)(ii) of the Act. Before him, it was contented that the said donation to the above society was made in good faith and it claimed eligible deduction on the basis of contribution receipts and certificates received from rural development society and Matrivani Institute of Experimental Research and Education. The company was neither aware of at t....

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....amount of commission. When notice u/s 148 issued to the assessee as it was also beneficiary of taking deduction u/s 35(1)(ii) which was bogus entities, it surrendered the weighted deduction in the return filed in compliance of notice u/s 148. Sensing the bogus claim of deduction, assessee came forward for surrendering the amount of deduction and not before proceedings u/s 147. It is stated by the AO that the assessee was well aware about the bogus entity of claiming deduction u/s 35(1)(ii) but never came forward to surrender the same until or unless notice u/s 148 was served upon him. So claim of the assessee that it suo-moto surrendered the amount the donation in the revise return could not be accepted. If it was so, assessee would have op....

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....nt facts of the case on record, rival submissions and the provisions of the law in this regard. We do not find any infirmity in the penalty order. The cited decisions of the ld.AR are distinguishable and not applicable to the case in hand. In these decisions, the issue basically pertained to satisfaction drawn by the assessee which is not the issue here. In the present case, there is absolutely no doubt that the assessee surrendered the impugned deduction only in consequence to the notice u/s 148 of the Act. It is evident that the original assessment in this case was framed on 21.12.2018. Notice u/s 148 was issued claim on 20.02.2019 consequent to the receipt of information by the AO regarding the bogus nature of the. Return u/s 147 was fil....

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....e Act having come to the conclusion that in the facts of the case, the assessee had concealed the income initially with a view to avoid the payment of tax, we are of the view that no substantial question of law is involved in this case requiring the admission of the appeal. Consequently, the same is hereby dismissed. In the case of Mak Data Private Limited v. CIT (2013) 358 ITR 593(SC) where also the surrender of income in this case was not voluntary in the sense that the offer of surrender was made in view of detection made by the AO in the search conducted in the sister concern of the assessee, it was held that it cannot be said that the surrender of income was voluntary. AO during the course of assessment proceedings has noticed that cer....