2026 (5) TMI 1707

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....The brief facts of the case are that, the assessee is an individual and filed his original return of income for A.Y. 2020-21 on 09.01.2021, admitting the total income of Rs. 22,42,400/-. A search and seizure operation under section 132 of the Income-tax Act, 1961 was conducted in the group cases of M/s. Bala Vikasa Social Service Society on 15.03.2023 and as a part of search, the case of the assessee was also covered. During the course of search, it was found that, the assessee had sold immovable property for a consideration of Rs. 85,00,000/-, however, has not offered capital gains to tax. Consequent to search, the assessment has been reopened under section 147 of the Act, and during the course of assessment proceedings, the A.O. called up....

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....s also admitted capital gain for sale of property in response to notice under section 148 of the Act, and therefore, it cannot be said that the assessee has under-reported income, is in consequence of misreporting of income. 4. The A.O., after considering relevant submissions of the assessee and also taking note of the provisions of section 270A(9) of the Act, observed that, there is a difference between income computed in the assessment order passed under section 147 r.w.s. 143(3) of the Act, and the income determined in the order passed under section 143(1) of the Act, and the difference in amount of income admitted by the assessee falls under the category of under-reporting of income, and further, the same is liable for penalty under ....

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....t to note that the assessee has not offered the short-term capital gain voluntarily, but due to the very fact that the sale of agricultural land was unearthed during the course of search operation and the search had not taken place, the assessee would not have disclosed capital gains. Therefore, it is a clear case of under-reporting of income, is in consequence of misreporting thereof, and therefore, the A.O. has rightly levied penalty under section 270A(9) of the Act, and thus, rejected the explanation of the assessee and upheld the penalty levied by the A.O. 6. Aggrieved by the order of the learned CIT(A), the assessee is in appeal before the Tribunal. 7. The learned counsel for the assessee, Shri Vamseedhar, C.A. submitted that, th....

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.... notice under section 148 of the Act. The assessee has not reported capital gains in the original return of income. Although the assessee has reported capital gains in the revised return filed in response to notice under section 148 of the Act, but fact remains that there is a difference between determined under section 143(1) of the Act, and income assessed, which falls under sub-section (3) of section 270A of the Act. Since the assessee has misrepresented or suppressed the facts with regard to the capital gains, the A.O. has rightly invoked section 270A(9) of the Act. Thus, there is no merit in the arguments of the assessee and thus, the appeal filed by the assessee should be dismissed. 9. We have heard both parties, perused the materi....

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....ned as per section 143(3) of the Act, because there was no regular assessment under section 143(3) of the Act. However, there is a difference between the income assessed by the A.O. in the order passed under Section 143(3) r.w.s. 147 of the Act, and the income determined under Section 143(1) of the Act. However, there is no difference between the income returned by the assessee in response to notice under Section 148 of the Act and the income assessed by the A.O. Therefore, the concept of under-reporting of income has to be understood in the context of return of income filed in response to notice under section 148 of the Act, and the income assessed by the A.O., and if we consider the income assessed by the A.O. and the income returned by t....