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2020 (9) TMI 27 - ITAT AHMEDABADPenalty u/s 271(1)(c) - income disclosed by the assessee for the investment made in the insurance policies under the charge concealment of income - undisclosed investment in the insurance policies - whether the summon issued under section 131(1A) can be equated as proceeding as envisaged u/s 271(1)(c)? - HELD THAT:- The answer certainly stand in negative. It is because, the summon was issued under section 131(1A) of the Act by the ADIT much before the initiation of the proceedings initiated under section 148. Similarly, the assessee disclosed the income much before the initiation of the proceedings initiated under section 148 of the Act. Admittedly, the income disclosed by the assessee in response to the notice issued under section 148 of the Act was accepted by the revenue without any further addition. As such the return income was accepted by the revenue. Accordingly, the revenue has to find out the concealment of income with reference to the income declared by the assessee in the return of income filed under section 148 viz a viz the income as assessed by the AO. As, there was no difference between the return and the assessed income, then in our considered view, the question of penalty does not arise merely on the basis of the income admitted during the survey proceedings. There cannot be a penalty merely on the basis that the assessee has disclosed income after receiving the notice from the ADIT and the income was accepted during survey proceedings as discussed above. No incriminating documents discovered during the course of survey at the premises of the assessee. Similarly, the additional income offered by the assessee in return filed in response to notice under section 148 of the Act admitted as it is by the AO. Accordingly, we conclude that the principles laid down in the case MAK Data [2013 (11) TMI 14 - SUPREME COURT] are not applicable on the case in hand. Hence, the penalty in the instant case cannot be attracted under the provisions of section 271(1)(c) in the present facts and circumstances. - Decided in favour of assessee.
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