2023 (5) TMI 1508

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.... that the assessee had not filed any return of income for the AY 2011-12 u/s 139 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). On realising the mistake, the assessee in March 2017 deposited the tax due for AY 2011-12 along with interest thereon. Thereafter, the assessee filed a letter dated 29.03.2017 before the Assessing Officer (AO) enclosing copy of the challan towards payment of tax and computation of income for the assessment years 2011-12. The said disclosure was made by the assessee voluntarily. One year thereafter, the AO issued notice u/s 148 of the Act on 31.03.2018. In response to the said notice, the assessee filed return of income declaring total income of Rs.8,35,790/-. The AO accepted the income returned....

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....account of rental income. The Ld. AR in support of his submissions placed reliance on the following decisions: 1. CIT vs. Ashutosh Bhatt 138 taxmann.com 536 (Bombay); 2. Armoury International vs. ACIT in ITA No.3299, 3300 & 3301/MUM/2017 decided on 01.01.2019; and 3. The W. B. State Co-opt. Marketing Federation Ltd. vs. DCIT in ITA No.85/KOL/2013, for AY 2008-09 decided on 10.06.2015. 3. Per contra, Shri V. S. Mahajan representing the Department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The Ld. Departmental Representative (DR) submits that the assessee has failed to disclose full rental income in the return. As per the information available with the Department, the....

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....e Act. In the absence of any addition/disallowance resulting in enhancement of taxable income, no penalty u/s 271(1)(c) of the Act is leviable. 6. De hors, the fact that no addition was made in assessment order, hence, no penalty proceedings u/s 271(1)(c) of the Act was leviable, we have also examined the manner of recording satisfaction and levy of penalty. The AO recorded satisfaction for initiating penalty u/s 271(1)(c) of the Act by observing as under: "Initiate penalty u/s 271(1)(c) as the assessee has not filed Return of income in spite of having taxable income and also initiate 271F of the I. T. Act as the assessee has failed to file Return of Income u/s 139(1) of the Act." A perusal of the above satisfaction recorded ....