TMI Blog2017 (6) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... was no satisfaction of the AO for initiating the penalty and accordingly we set aside the orders of the CIT(A). The Ld.CIT(A) has not decided the case on merits and during the appeal hearing the Ld.DR did not place the statement recorded during the course of survey and the incriminating material found and seized. Therefore we remit the matter back to the file of the CIT(A) to decide appeal on merits. - I.T.A. No. 110/HYD/2016 - - - Dated:- 26-5-2017 - Shri V. Durga Rao, Judicial Member And Shri D.S. Sunder Singh, Accountant Member For Revenue : Smt. Suman Malik For Assessee : Shri M.V. Anil Kumar ORDER Per D. S. Sunder Singh, A. M. This appeal filed by the revenue is directed against order of CIT(A) 7, Hyderabad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... veloped the inherited agricultural lands into plots and sold the part of the same during the year and up to the date of survey. 2.1 The AO observed that to cover up the omissions pointed out during the course of survey, the assessee HUF declared an amount of ₹ 85,07,000/ towards capital gains on transfer of property into stockin- trade and ₹ 40,13,000/- towards business income on sale of plots for the Asst. Year 2013-14. Accordingly, filed revised return of income on 29.03.2014 declaring total income of ₹ 1,27,51,450/- and agricultural income of ₹ 3,00,000/-. Scrutiny assessment U/s 143(3) of the I.T.Act,1961 dated 18.07.2014 was passed determining the total income of the assessee at ₹ 1,36,19,811/- and agri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iated. There is no concealment of income or furnishing of inaccurate particulars. I submit that after the survey and obtaining professional advice/ I have made declaration of income and filed the return of income admitting the same. The income was estimated and the same was agreed during the assessment proceedings. It is therefore submitted that there is no concealment of income or furnishing of inaccurate particulars. The Accounts have been properly maintained and vouchers have been produced for verification. All the payments have been made in the course of business and for the purpose of business. However. the then Assessing Officer in order to estimate the income/ proposed to reject the books which was not objected and agreed to es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts to jurisdictional defect and cannot be cured. 7. Aggrieved by the order of the CIT(A), the revenue is in appeal before us. 8. Ld. DR appearing for the revenue argued that the CIT(A) deleted the addition holding that there was no satisfaction recorded regarding concealment of income in the assessment order which is incorrect. She submitted that from the plain reading of the assessment order, it is clearly apparent that the assessee has filed the return of income originally on 31/07/2013 admitting the income of ₹ 3,30,747/- from function hall. She submitted that though assessee is having income from real estate , assessee has not admitted the income from real estate in the return of income filed. She submitted that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the satisfaction in the Assessment order and relied on the Jurisdictional High court decision in the case of V.V.vs. Projects Investments(P)Ltd. v.CIT 300 ITR 40. Hon ble Jurisdictional high court delivered the judgment for the A.Y.1995-96 and subsequently the act has been amended by introducing sub section(1B) in section 271 by the Finance Act, 2008, with effect from 01/04/1989 which reads as under: (1B) Where any amount is added or disallowed in computing the total income or loss of an assessee in any order of assessment or reassessment and the said order contains a direction for initiation of penalty proceedings under clause (c) of sub-section (1), such an order of assessment or reassessment shall be deemed to constitute satisfact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This provision creates a fiction by which satisfaction of the Assessing Officer is deemed to have been recorded in cases where an addition or disallowance is made by the Assessing Officer and a direction for initiation of penalty proceedings is issued. The said provision is made effective retrospectively with effect from April 1, 1989. 10.1 It is observed that the assessee s case pertains to AY 2013-14, and the assessing officer has made the direction in the assessment order for initiation of penalty proceedings u/s 271(1)(c) and it sufficient compliance for recording the satisfaction for initiation of penalty proceedings. This view is supported by Hon ble Apex court s decision in MAK Data (P.) Ltd. v CIT [2013] 38 taxmann.com 448 (SC) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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