| The Tax Publishers2020 TaxPub(DT) 3451 (Ahd-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
As there was no any incriminating documents discovered during survey at premises of assessee, therefore, it could not be said that had action not been taken by department by conducting survey under section 133A in return filed in response to subsequent notice issued under section 148 and when additional income offered by assessee was admitted by AO as it was, AO was not justified in levying penalty under section 271(1)(c) on account of concealment of income for investment in the insurance policies.
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Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Leviability - Voluntary disclosure of addition income in return filed in response to section 148 notice issued subsequent to survey--No incriminating document discovered during survey
Assessee for the year under consideration filed return disclosing income of Rs. 9,75,220 which was accepted as it was by AO. Subsequently, a summon was issued under section 131(1A) requiring assessee, among other things, to furnish details of the insurance policies held by him and his family members. However, assessee, in the meantime, vide Letter, addressed to AO under section 273A disclosed an income of Rs. 5 crore representing investment made by him in insurnace policies in different years. Subsequently survey was conducted at business premises of assessee but there was no incriminating material found by survey team. However, assessee in the statement recorded during survey admitted that he had made unaccounted investment in the insurance policies, but further claimed that he had already disclosed such investment as additional income before CIT by filing application under section 273A. Subsequently, AO issued a notice under section 148 requiring assessee to file his return of income. Assessee in response to such notice disclosed income of Rs. 59,75,220 including investment made in undisclosed insurance policies which was accepted as it was by AO. As per AO had action not been taken by department by conducting survey under section 133A assessee would not have offered the undisclosed investment in insurance policies as income. Accordingly, AO levied penalty under section 271(1)(c) on account of concealment of income for investment in the insurance policies.Held: There was no any incriminating documents discovered during survey at premises of assessee. Similarly, additional income offered by assessee in return filed in response to notice under section 148 admitted as it was by AO. Accordingly, AO was not justified in levying penalty under section 271(1)(c).
Distinguished:MAK Data (P) Ltd. v. CIT (2013) 358 ITR 593 (SC) : 2013 TaxPub(DT) 2358 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
IN THE ITAT, AHMEDABAD BENCH
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