INCOME TAX ACT, 1961

Section 271(1)(c), Expln. (1A)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Income detected during survey -

assessee filed original return of income on 2-1-2010 and the same was processed under section 143(3). Subsequently, survey proceeding was conducted by Investigation Wing, on 18-5-2010 when introduction of share capital with premium in M/s. 'C' by the directors/share holders of the company was detected. Assessee was one of the directors said company on 3-12-2010 assessee disclosed 1.60 crores towards introduction of share in M/s. C by way of a revised return. This led to imposition of penalty under section 271(1)(c). According to assessee, voluntary amount disclosed by the assessee was on good faith and no penalty could be levied. Moreso, revised return was filed before issuance of under section 148. Held: Had it been the intention of assessee to disclose the income detected voluntarily then assessee would have disclosed the same by filing revised return before survey which proved inaccurate particulars were filed in order to conceal the income in original return of income. Explanation -- 1A to section 271(1)(c), therefore, got attracted and levy of penalty was justified.

Followed:MAK Data (P) Ltd. v. CIT (2013) 38 Taxmann.com 448 (SC) : 2013 TaxPub(DT) 2358 (SC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10

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