INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Validity - Concealment of income or furnishing of any inaccurate particulars -

A search took place at the premises of Group concern and certain papers relating to assessee were found. Assessee revised the return in which additional income from long term capital gain and short term capital gain was shown. According to assessee, such capital gain was not offered in original return. The sale deed was presented before registration authority during financial year 2009-10, hence amount of capital gain was offered on it in financial year 2010-11 by assessee through a revised return filed beyond the time allowed under section 139(5). AO observed that assessee had concealed the particulars of her income and thereby reduced her due tax liability and levied penalty under section 271(1)(c). CIT(A) and Tribunal deleted the penalty. Held: In the case of MAK Data P. Ltd. v. CIT (2013) 358 ITR 593 (SC) : 2013 TaxPub(DT) 2358 (SC) there was no explanation by assessee for the concealed income and in absence of any explanation in respect of the surrendered income, Apex Court had held that the law does not provide that when an assessee makes a voluntary disclosure of his concealed income, he had to be absolved from penalty. The voluntary disclosure does not release the assessee from the mischief of penal proceedings and dismissed the appeal of assessee. ITAT had not appreciated the evidence of AO and order passed by Appellate Authority. AO had no-where recorded his satisfaction to the fact that assessee had concealed the particulars of income or furnished any inaccurate particulars of such income. Thus appeal of Revenue was deleted.

REFERRED : MAK Data P. Ltd. vs. Commissioner of Income Tax-II [(2013) 358 ITR 593 (SC) : 2013 TaxPub(DT) 2358 (SC)]

FAVOUR : In assessee's favour

A.Y. :

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