INCOME TAX ACT, 1961

Section 271(1)(c) Section 133A Section 260A

Penalty under section 271(1)(c) - Leviability - Income surrendered during survey duly disclosed in return of income filed subsequent to survey -

In the course of the survey proceedings, assessee firm declared unaccounted income of Rs. 1,78,50,000 received during assessment year 2012-13. Later, the assessee filed its return of income declaring its total income of Rs. 2,59,11,800 including the unaccounted income of Rs. 1,78,50,000 disclosed during the course of the survey proceedings. Assessment order under section 143(3) came to be passed and the income was assessed at Rs. 2,59,11,800, meaning thereby, the returned income was accepted as the assessed income. AO, vide his Order, levied penalty under section 271(1)(c) on the premise that the assessee had furnished inaccurate particulars of his income which led to concealment of his income. CIT(A) deleted the penalty levied by the AO. Tribunal dismissed the appeal preferred by the revenue and thereby affirmed the order passed by the CIT(A).Held: In the peculiar facts of the present case, the Tribunal arrived at the conclusion that the case was not one of furnishing ianccurate particulars of income. Findings recorded by the CIT(A), which ultimately came to be affirmed by the Tribunal in its impugned order held that deparment had not built a case where the explanation of the appellant had been proved to be false or not bona fide. Even the conditions of Explanation 1 of section 271(1)(c) are not applicable in such a case. In the absence of any concealment of the particulars of income or furnishing of inaccurate particulars of income on the part of the assessee, no infirmity can be found in the impugned order passed by the Tribunal in confirming the order passed by the CIT(A) in deleting the penalty under section 271(1)(c). In the overall view of the matter, no error not to speak of any error of law could be said to have been committed by the Tribunal in passing the impugned order. No interference is warranted in this appeal under section 260A. In the result, this appeal failled and was dismissed.

Relied:CIT v. SAS Pharmaceuticals (2011) 335 ITR 259 (Del) : 2011 TaxPub(DT) 999 (Del-HC) and Mak Data Pvt. Ltd. v. CIT (2013) 358 ITR 593 (SC) : 2013 TaxPub(DT) 2358 (SC). Followed:Pr. CIT v. Valibhai Khanbhai Mankad, TA No. 445 of 2015, decied on 7-9-2015.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-13

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