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2015 (7) TMI 400 - AT - Income TaxPenalty u/s 271(1)(c) - rental income from flat omitted to be included at the time of filing of original return of income - Held that:- Nothing has been mentioned or asked from the assessee regarding rental income of the assessee, nor any details of flats owned by the assessee. Later on, when the assessee had filed a revised return on 06.11.2010 including the rental income of ₹ 1,61,880, there was no specific query or enquiry by the AO prior to this date. Neither from the assessment order nor from the records as are available before us, it is borne out that the assessee had offered the rental income from the second flat, only when she was cornered or enquired by the AO. Even if the revised return is held to be invalid, then also the revised computation filed with the revised return declaring such an income is liable to be held as voluntarily, and therefore, such an offer of income during the course of the assessment proceedings cannot lead to a conclusion that the assessee is liable for penalty u/s 271(1)(c). The finding of the CIT(A) that the assessee had filed initial return with a view to conceal the income and the revised return was out of compulsion cannot be held to be correct because no such compulsion is borne out from the records, that the assessee came forward for offering the income only when the AO had carried out any inquiry or has cornered the assessee on the issue of non- offer of rental income in the original return of income. Thus, the penalty levied u/s 271(1)(c) is deleted - Decided in favour of assessee.
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