Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 801 - AT - Income TaxPenalty levied under section 271(1)(c) - additional income offered in the return of income submitted under section 153A - CIT(A) deleted the levy - Held that:- The assessee had furnished original return of income in which he had not declared its receipts from the profession, but pursuant to the search and seizure operation, certain incriminating documents were seized, which contained unrecorded receipts, expenses and investments in various financial years and the assessee in response thereto, declared the additional professional fees and paid taxes. The case of the assessee before us was that since the additional taxes have been paid there is no question of levy of penalty under section 271(1)(c) of the Act. We find no merit in the said claim of the assessee, in view of our order of even date in the case of Mrs.Sarita Kaur Manjeet Singh Chopra Vs. ITO ( 2015 (12) TMI 1025 - ITAT PUNE ). Accordingly, we uphold the levy of penalty under section 271(1)(c) of the Act on unrecorded receipts, expenditure and investments declared by the assessee pursuant to search. - Decided against assessee. Addition made by the Assessing Officer in the assessment proceedings pursuant to the original return of income filed by the assessee - Held that:- From the perusal of details, we find that the said addition was made by the Assessing Officer while passing the order under section 143(3) of the Act, which in turn, was confirmed by the CIT(A) and the Tribunal. While filing the return of income under section 153A of the Act, the assessee had not included the said additional income. The penalty proceedings, if any had to be initiated and levied pursuant to proceedings under section 143(3) and not pursuant to proceedings under section 143(3) r.w.s. 153A of the Act. Accordingly, we find no merit in the said observations of the authorities below and we direct the Assessing Officer to levy penalty under section 271(1)(c) of the Act on the additional income assessed in the hands of assessee pursuant to search and delete the penalty for concealment on the alleged addition of ₹ 6,00,000/-.- Decided in favour of assessee in part.
|